Traders Are Starting to Cash In on Bets for Bigger Fed Rate Cuts
- Open interest in 10-year note futures off their highs Monday
- Until now money has been piling into bullish rate-cut wagers
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US Treasuries are at risk of a further selloff as traders in the futures and options markets cash in on their bets for aggressive Federal Reserve interest-rate cuts this year.
After piling into Treasury futures contracts at a rate not seen since 1982, according to CME Group Inc. data, traders are starting to pull back on their dovish bets. Open interest in the Treasury futures market, or the amount of new positions held by traders, fell across most tenors at a rapid clip on Monday, with 10-year note futures slipping from its all-time highs.