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- 1Cayman Hedge Funds Hit Record $211 Billion in US T-Bill Holdings●Cayman Hedge Funds Hit Record $211 Billion in U.S. T-Bill Holdings
Hedge funds based in the Cayman Islands now hold a record $211 billion in US Treasury bills, according to newly reported figures. The buildup reflects the growing scale of the basis trade, in which funds exploit the gap between Treasury futures and bond prices, and highlights how much leveraged money flows through offshore vehicles into short-term US government debt. Analysts are weighing what the concentration means for market stability if positions unwind quickly.