Traders Weigh Next Move After Short Bond Wagers Scrapped
- Positioning moves to neutral as bearish front-end wagers cut
- Barclays proposes shorting front-end as cuts repriced
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Rate traders are hanging back from making big bets with the Federal Reserve’s policy path for this year very much up for debate.
Recent activity in the futures market suggests that investors moved to cover their bearish positions on shorter dated notes as the yield on US two-year continued its retreat from the 5% level. The shift comes after traders dovishly repriced the amount of rate cut premium for this year following soft US jobs data.