EconomyHedge funds built a $1.2 trillion Treasury trade on money they must keep borrowing
Hedge funds buy Treasuries, short futures and borrow most of the purchase price to capture a small pricing gap. Positions were estimated at about $1.2 trillion after falling 20% this year, but the trade remains exposed to overnight repo renewals, margin calls and higher borrowing costs. Even without a US default, funds may be forced to unwind if financing disappears.
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CryptoSlate★★★★☆2026-10-03 18:40Original
Hedge funds built a $1.2 trillion Treasury trade on money they must keep borrowing
Economy