Topics

Posted 8/30/2023, 5:54:00 PM

Treasury market sees growing divergence between investors and their positions

Hedge funds are increasing their short positions in the Treasury market, while asset managers are going long, reflecting different views on the U.S. economic outlook and causing volatility in the 10-year Treasury yield.

marketwatch.com

Relevant topic timeline:

8/17/2023

U.S. Treasury yields jump and stocks dip on rate, China concerns

Longer-dated U.S. Treasury yields reach a 10-month high as Wall Street experiences losses and investors grapple with the potential for longer-lasting high interest rates and a struggling Chinese economy.

8/22/2023

Analysis: From stocks to bitcoin, soaring US yields cast shadow over risk asset rally

Surging U.S. Treasury yields are causing concern among investors as they wonder how much it will impact the rally in stocks and speculative assets, with the S&P 500, technology sector, bitcoin, and high-growth names all experiencing losses; rising rates are making it more difficult for borrowers and increasing the appeal of risk-free Treasury yields.

8/22/2023

Column: Oil market falls into holiday torpor

The short-covering rally in petroleum prices lost momentum last week due to prices and positions reaching long-term averages, as well as the seasonal slowdown in trading and investment activity. Hedge funds and money managers made no net change in their combined position in oil-related futures and options contracts, with bullish sentiment higher for refined fuels than for crude petroleum. Meanwhile, positions in U.S. natural gas remained unchanged as fund managers reduced both long and short positions as a risk-reducing measure following recent price and position increases.

8/26/2023

Bank of America: Hedge funds are unusually bullish about these 20 stocks as they brace for tough times in markets

Hedge funds are cautious despite positive economic data, with defensive holdings high relative to cyclical stocks, and here are the 20 stocks hedge funds are gravitating towards in this uncertain market.

8/28/2023

Investors parked heavy in cash may be making a 'mistake', Nuveen says

Investors should consider moving into longer-dated bonds as historical data shows that the broader U.S. bond market typically outperforms short-term Treasurys at the end of Federal Reserve rate hiking cycles, according to Saira Malik, chief investment officer at Nuveen.

8/31/2023

Hedge funds' use of leveraged Treasury trades needs monitoring, Fed paper says

Hedge funds' increased use of leveraged trades in the Treasury market is raising concerns among economists at the Federal Reserve Board, who highlight the need for continued monitoring due to the potential financial stability vulnerability of these trades.

9/4/2023

Treasury Yields Are Moving. Where They’re Going Next.

Treasury yields are on the move and investors should pay attention to where they might be headed next.

9/11/2023

Hedge Funds Bet on Higher Oil Prices as Supply Cuts Boost Crude Markets

Hedge funds are returning to the oil market with their most bullish wagers in over a year, as the deflationary price effect from US gasoline has disappeared and oil prices have surged since June due to production cuts by Saudi Arabia and Russia.

9/19/2023

Markets on Edge Ahead of Expected Fed Rate Hike as Oil Prices Climb, Housing Slumps

Treasury yields rise and stocks fall as traders anticipate longer-lasting higher rates to prevent inflation, while Brent oil briefly surpasses $95 a barrel; the Federal Reserve's decision on interest rates is eagerly awaited by investors.

9/20/2023

Declining Treasury Market Volatility Helps Stabilize Crypto and Stocks

The reduced volatility in the US Treasury market has supported risk assets like cryptocurrencies and stocks, with the MOVE index falling to its lowest level since the Fed began raising rates, providing a positive outcome for assets such as bitcoin.

9/21/2023

Large Short Positions in Treasuries Threaten to Spark Market Turmoil, Analysts Warn

U.S. asset managers have accumulated $600 billion in net short positions in U.S. Treasury futures, which could threaten the bond market if they are forced to sell suddenly due to a potential U.S. government shutdown.

9/22/2023

Rising Rates Sting U.S. Households With Record Treasury Holdings

U.S. households now hold more Treasury securities than at any point in the past 25 years, as the rise in U.S. yields makes them attractive to investors.

Topics

Posted 8/30/2023, 5:54:00 PM

Treasury market sees growing divergence between investors and their positions

marketwatch.com

Relevant topic timeline:

8/17/2023

U.S. Treasury yields jump and stocks dip on rate, China concerns

8/22/2023

Analysis: From stocks to bitcoin, soaring US yields cast shadow over risk asset rally

8/22/2023

Column: Oil market falls into holiday torpor

8/26/2023

Bank of America: Hedge funds are unusually bullish about these 20 stocks as they brace for tough times in markets

8/28/2023

Investors parked heavy in cash may be making a 'mistake', Nuveen says

8/31/2023

Hedge funds' use of leveraged Treasury trades needs monitoring, Fed paper says

9/4/2023

Treasury Yields Are Moving. Where They’re Going Next.

Treasury yields are on the move and investors should pay attention to where they might be headed next.

9/11/2023

Hedge Funds Bet on Higher Oil Prices as Supply Cuts Boost Crude Markets

9/19/2023

Markets on Edge Ahead of Expected Fed Rate Hike as Oil Prices Climb, Housing Slumps

9/20/2023

Declining Treasury Market Volatility Helps Stabilize Crypto and Stocks

9/21/2023

Large Short Positions in Treasuries Threaten to Spark Market Turmoil, Analysts Warn

9/22/2023

Rising Rates Sting U.S. Households With Record Treasury Holdings

U.S. households now hold more Treasury securities than at any point in the past 25 years, as the rise in U.S. yields makes them attractive to investors.