Bond Traders Quick to Abandon Long Wagers Before Fed Meeting, CPI Data
- Position exodus seen in 10-year futures since jobs report
- Investors’ net-long position dropped to lowest in two months
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Traders are rapidly unwinding bets for a rally in US Treasuries ahead of Wednesday’s rare double-risk event, with the release of inflation data coming just hours before a Federal Reserve interest-rate decision.
The likelihood that US policymakers will keep borrowing costs higher for longer is overtaking optimism surrounding the dawn of the Fed’s easing cycle, according to futures positioning data underlying the $27 trillion Treasury market.