Hedge funds' US Treasury holdings rise to near 10% as basis trade grows, analyst Ueno Arki warns of selloff risk

Hedge funds' share of US Treasury holdings has expanded to nearly 10% as governments and pension funds reduce theirs, with the 'buy Treasuries + sell futures' basis trade using high leverage. Analyst Ueno Arki warns a simultaneous selloff in a market shock could crash Treasury prices and spike long-term yields.

Detected & updated continuously · Source: Nebula