✉news BusinessFinance first seen 4 d ago, last 3 d ago, peak #37
Hedge funds' $1.2 trillion Treasury bet rests on constant borrowing
Original: Hedge funds built a $1.2 trillion Treasury trade on money they have to keep borrowing
Hedge funds have built an estimated $1.2 trillion position in US Treasuries through trades that depend on continuous short-term borrowing, known as the basis trade. Analysts warn the strategy, which exploits small gaps between futures and bond prices, is highly leveraged and could unravel quickly if funding dries up, raising concerns about stability in the Treasury market and potential spillovers to the wider financial system.
Why now: Concerns are growing that a heavily leveraged, borrowing-dependent position could destabilize the Treasury market if funding conditions tighten.
Rank over time, top of the chart is #1. 4 snapshots from 4 d ago to 3 d ago.
Evidence
- Hedge funds built a $1.2 trillion Treasury trade on money they have to keep borrowing · CryptoSlate
- Hedge funds built a $1.2 trillion Treasury trade on money they have to keep borrowing · CryptoRank
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