Hedge funds have upped their short positions in US Treasuries as yields approach the highest seen so far this year, increasing their divergence from asset managers who are taking the long side of the trade, according to a report by Bloomberg.
The report cites data from Bank of America as confirming the increase in hedge fund short positions, while JPMorgan’s latest Treasury client survey also shows an increase in short positions in the cash bond market, which are now at the highest level seen since 1 May.
The latest CFTC positioning data highlights the growing disparity in short vs long positioning between hedge funds and asset managers, with hedge funds adding 176,000 10-year futures equivalent to net short, and asset managers taking the other side, adding 137,000 10-year futures equivalent to net long.
