Bridger PenningtonFund Launch & Investment Expert

Biggest Short Ever on Treasuries

25 Apr 2023 · 0 min

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Hedge funds have taken their largest short positions ever on U.S. Treasuries, betting on persistent inflation and further price declines. The move mirrors losses at banks like SVB that held long-duration bonds marked down as rates rose.

Hedge funds taking the biggest short position ever on Treasuries right now. Bloomberg just reporting this. They are betting that inflation is going to be here longer, that Treasuries are going to be devalued even more. So what brought down SVB, a bunch of other banks, as they were holding these long-term Treasuries and they were actually devalued, had to mark down those losses. We'll see what happens over the next couple of weeks with FOMC meeting coming up.