Sales of food, beverage and tobacco stocks by global hedge funds hit the fastest pace seen in 11 weeks last week, as the yields for US Treasuries surged, according to a report by Reuters, citing data from Goldman Sachs’ prime brokerage division.
The value of wagers against consumer staples during the week ended 13 October reached the highest level seen in three months and ranked among the highest level recorded in the past five years, according to a Goldman Sachs client note.
US consumer staples stocks – household goods, alcohol and tobacco products – which normally deliver consistent and higher dividends than US Treasuries, have fallen by around 10% so far this year putting theme way behind soaring US government bond yields. US 2-year Treasury yields rose about 15 basis points between 10 and 13 October and continued to rise on Monday 16 October climbing an addition. 1.5 basis points.
According to Goldman Sachs, US consumer staples sector stocks made up the weakest performing group in the S&P 500 during the week ending 13 October, while the sector was also the most net sold on the bank’s prime brokerage trading book with the sell-off comprising both short best and exits from long positions.
