Hedge Funds Blow Up From Rate Volatility Ahead of The Fed
Market Depth
Levered Funds and the Fed's Intervention in the US Treasury Market
Hedge funds were short almost 1.2 million contracts versus being long about 500,000 contracts at the end of February. Then two year treasuries went on this massive rally and yield collapse. Brevin Howard had grounded three of its rates traders after they blew up their positions amidst this rates war. The most extreme test case is the bank of Japan and the JGB market if you want to see what a truly distorted and completely upside down government bond market looks like.
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