Hedge funds de-gross UST positions during high equity volatility, Luke Gromen notes - Traders Union
Hedge funds de-gross UST positions during high equity volatility, Luke Gromen notes - Traders Union
Source: Traders Union
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DW NOTE
Hedge funds cut gross Treasury exposure during the equity sell-off — not because they turned bearish on bonds, but because volatility forced position-sizing down across the board. When VIX spikes, risk limits shrink, and even basis trades get unwound. The 10-year yield is at 5.15% not because of conviction selling, but because no one can afford the leverage to own duration at scale.