This is not a paywall.

Register for free to continue reading.

We made a promise to you that we’ll never erect a paywall and we intend to keep that promise. We also want to continually improve your reading experience and you can help us do that by registering with us. It’s quick, easy and will cost you nothing.

Nearly there! Create a password to finish up registering with us:

Please enter your password or get a login link if you’ve forgotten

Open Sesame! Thanks for registering.

First Thing, Daily Maverick's flagship newsletter

Join the 230 000 South Africans who read First Thing newsletter.

Hedge Funds Kicked Off 2021 With $49 Billion Sale of Tr...

Business Maverick

Business Maverick

Hedge Funds Kicked Off 2021 With $49 Billion Sale of Treasuries

A pedestrian wearing a protect mask carries CVS Health Corp. shopping bags while walking in the Upper West Side neighborhood of New York, U.S., on Wednesday, Sep. 23, 2020. Residents of Manhattan’s Upper West Side formed the West Side Community Organization in response to the city placing 600 homeless people in the area. City Hall removed them from group shelters to reduce the spread of Covid-19 and is paying to lodge them in boutique hotels hungry for business in the tourist-challenged year of 2020. Photographer: Mark Abramson/Bloomberg
By Bloomberg
16 Mar 2021 0

Hedge funds offloaded the most Treasuries in nine months in January, foreshadowing a selloff in U.S. bonds that occurred just weeks later.

The Cayman Islands, seen as a proxy for hedge funds and other leveraged accounts, dumped $49 billion of U.S. sovereign bonds, making it the largest net seller of the debt that month, according to the latest data from the Treasury Department.

The selling came on the back of the Democratic victories in the January 5 Georgia run-off race which paved the way for bumper stimulus spending to revive the U.S. economy. Bets for growth and inflation to quicken have since gained traction, fueling a jump in Treasury yields to the highest in over a year.

Blue wave sparked a wave of hedge fund selling

Benchmark U.S. yields rose 15 basis points in January to break the 1% level for the first time in over nine months. The data, released on Monday, suggest hedge funds were well positioned for what was to follow, as yields surged another 34 basis points in February.

Hedge Fund Research Inc.’s Macro Total Index, which tracks discretionary macro managers among others, climbed 0.2% in January, before clocking up a 2.8% gain in February.


Comments - share your knowledge and experience

Please note you must be a Maverick Insider to comment. Sign up here or sign in if you are already an Insider.

Everybody has an opinion but not everyone has the knowledge and the experience to contribute meaningfully to a discussion. That’s what we want from our members. Help us learn with your expertise and insights on articles that we publish. We encourage different, respectful viewpoints to further our understanding of the world. View our comments policy here.

No Comments, yet

Please peer review 3 community comments before your comment can be posted