Hedge Fund News From HedgeCo.Net

Hedge Funds Build Treasury Bets to ’07 High in Bear Rebuke

Bloomberg – Hedge funds are the most bullish on 10-year Treasuries since 2007, betting the U.S. economy is too fragile for the Federal Reserve to stop buying bonds even as the jobless rate drops to the lowest in four years and household wealth climbs.

Investors using borrowed funds to boost returns, so-called leveraged accounts, held $56.2 billion in contracts wagering on gains in 10-year Treasury futures in the week ending March 5, data from the Commodity Futures Trading Commission show. That’s the most since just before credit markets froze and the economy went into recession, sparking a rally in government bonds. As recently as July, there were net bets against the Treasuries.

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