Hedge funds and institutional investors are holding a record net short position against US Treasuries (CFTC data)
Submitted by Infamous_Sympathy_91 t3_10q452u in wallstreetbets
Why though? Yields to go up because they are betting inflation is not under control? Doesn’t seem to make sense? Are they thinking massive outflows from treasuries to stocks or maybe US government debt issues or possible default or near default? I think the US will turn itself inside out before they default.
If inflation is not under control the fed will continue to hike rates which drops bonds prices and raises yields
Isn’t inflation under control? Month over month, it’s at 2%. Having said that I am neck deep in puts because I think earnings will go down.
Yes. And there’s several models that suggest recession is either happening or imminent.
But the fed is still hiking to cause unemployment so they can rug pull the economy and the rich can buy everything up, then drop rates for the wealthy to refinance the debt cheaper. And so US gov doesn’t have high treasury interest rates
I get it now! Bond market at these levels pricing in a Fed pivot, 2nd half 2023, not higher rates through 2024. Essentially if no pivot then yield rates go up, bond prices go down.
It’s not under control yet
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