Treasury Traders Are Starting to Bet on Losses for US Bonds

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Treasury Traders Are Starting to Bet on Losses for US Bonds
BloombergBasis PointsFutures Market
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(Bloomberg) -- Traders are beginning to bet on losses in the US Treasury market as they adjust for a more gradual pace of Federal Reserve interest-rate...

-- Traders are beginning to bet on losses in the US Treasury market as they adjust for a more gradual pace of Federal Reserve interest-rate cuts.Should Evictions Be Banned After Hurricanes and Climate Disasters?

There’s an “appetite for new short risk ahead of this week’s inflation release,” Citigroup Inc. strategist David Bieber wrote in a note on Tuesday. The recalibration is stark, particularly in the futures market. Open interest, or the number of positions held by traders, has plunged across contracts linked to the Secured Overnight Financing Rate in the days since the employment report.In the December 2024 tenor, the two-day position reduction has amounted to approximately 223,000 contracts, equivalent to $5.6 million per basis point in risk, CME data released Tuesday shows.

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