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A Big Asset Manager Deleveraging Is Underway in Treasury Futures

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A Big Asset Manager Deleveraging Is Underway in Treasury Futures Asset managers are offloading long-duration Treasuries futures contracts, an indication that forced selling is underway as cash yields hover just off multiyear highs. Money managers shrunk their bullish position in ultra-long bond futures by about $27 million-per-basis point in risk in the two weeks ending Oct. 6, according to Commodity Futures Trading Commission data. That’s equivalent to roughly $38 billion worth of the...

A Big Asset Manager Deleveraging Is Underway in Treasury Futures Asset managers are offloading long-duration Treasuries futures contracts, an indication that forced selling is underway as cash yields hover just off multiyear highs. Money managers shrunk their bullish position in ultra-long bond futures by about $27 million-per-basis point in risk in the two weeks ending Oct. 6, according to Commodity Futures Trading Commission data. That’s equivalent to roughly $38 billion worth of the current 10-year cash note.
Deleveraging Is Underway (PERSON) Treasury (ORG) Treasury Futures Asset (ORG) Commodity Futures Trading Commission (ORG)
Originally published by Bloomberg Markets Read original →