The Federal Reserve’s interest rate battle to curb inflation may have some way to run yet, according to a report by Bloomberg, with hedge fund managers extending their record run of short sales of short-dated US Treasuries.
The report cites the latest data from the Commodity Futures Trading Commission (CFTC) as showing that leveraged investors boosted their net-short two-year Treasury positions for an eleventh straight week in the period to 6 June, marking the longest short-run on record, according to data going back to 2006.
A series of aggressive rate hikes has helped to relieve price pressures in the US, but inflation remains above target and the continued short selling by hedge funds suggest a degree of confidence that the Federal Reserve will raise rates again.
