Hedge Fund Bond Bears Timed US Inflation Shock to Perfection
- Leveraged fund positions all in net short territory: CFTC data
- Treasuries slumped after US CPI surprised to the upside
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Hedge funds timed their bond bets to perfection, turning bears on every single Treasury futures contract tracked by Bloomberg, right before Friday’s shock US inflation print sent debt markets tumbling.
Leveraged fund net positions flipped negative on two-year Treasury futures last week, having done the same for benchmark contracts the week before, according to the latest Commodity Futures Trading Commission data. They have been long-term bears of five-year and longer-dated Treasury futures.