/biz/ - Business & Finance

>>56292501
I went back and found my original post, basically hedgefunds are the longest bonds they've ever been. They've been openly lying about the positions in news articles by implying they're shorting treasuries, but what they're doing is a form of arbitrage between treasury futures and the actual treasury bond. They short the futures and long the bonds, so they actually have long exposure on the bonds, really. In a stable rate environment this is a simple arbitrage, but in a rising rate environment they get fucked the same as any other bondholder. Their pain trade has been to the upside on yields, and yield spikes taken in combination with falling RRP could be seen as hedgefunds exiting this trade at a loss.