Frantic trading in US Treasuries on Thursday morning indicated that hedge funds were rapidly unwinding positions vulnerable to losses, amplifying volatility in both cash and futures markets, according to a report by Bloomberg.
The 2- to 10-year yield spread fell nearly 8 basis points in just four minutes, hitting its lowest level in almost a year. The report cites Brij Khurana, portfolio manager at Wellington Management as highlighting that steepener trades, popular among hedge funds, accounted...
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