# Hedge funds built a $1.2 trillion Treasury trade on money they must keep borrowing

https://mins.news/en/item/84853

- CryptoSlate, 2026-10-03 18:40 UTC
- Economy
- Original: https://cryptoslate.com/hedge-funds-built-a-1-2-trillion-treasury-trade-on-money-they-have-to-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.