Catalyst Quant Fund Shorts 10-Year Treasuries as Key Macro Bet

David Miller News

Catalyst Quant Fund Shorts 10-Year Treasuries as Key Macro Bet
BloombergInterest RatesUS Treasuries
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(Bloomberg) -- A top-performing quant fund is shorting five-to-10 year US Treasuries on expectations that interest rates will stay on hold this year as...

-- A top-performing quant fund is shorting five-to-10 year US Treasuries on expectations that interest rates will stay on hold this year as prices remain elevated.Catering to the Ultra-Rich Is a Booming Business in Australia

Fears of higher-for-longer rates have whipsawed markets this year, sending 10-year yields surging by more than 90 basis points at one point from a February low. Traders have been forced to pare bets of more than 150 basis points of easing starting in March to one quarter-point cut before the end of the year.

Also adding pressure on bonds is the US government’s borrowing plan, said Miller. The Congressional Budget Office’s estimates released February show the budget deficit swelling to $2.56 trillion by 2034 from $1.58 trillion this year.

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