Jun
15

Hedge Funds Cut Treasury Shorts Amid Rout as Central Banks Buy

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Hedge funds and central banks are becoming more positive toward Treasuries during this quarter’s rout.

Large speculators including hedge funds last week trimmed their so-called short positions, or bets prices will decline. Central banks boosted their stake in U.S. government debt to a record. They bought even as Treasuries have tumbled 2.1 percent, headed for the steepest quarterly loss in two years, based on Bloomberg World Bond Indexes.

The good news during a bond market selloff is that yields become more attractive as they rise. What’s more, the U.S. offers a premium with five-year notes that pay more than 1 percent, whereas European and Japanese yields were negative earlier this year…

Hedge Funds Cut Treasury Shorts Amid Rout as Central Banks Buy

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