Report Reveals Hedge Fund Sell-Offs Fueling Flight from Treasuries

March 21, 2012 James Heinsman In the News

Mary Ann Bartels

In a report released on Monday by Bank of America/Merrill Lynch hedge fund analyst Mary Ann Bartels wrote that much of the recent flight from US Treasuries has been fueled by enormous unloading of the investments by hedge funds in recent days.

Bartel’s analysis revealed that during the week ending March 13 hedge funds and other large-scale investors sold almost 80 percent of their investments in 2-year Treasury note futures. Last week US Treasury prices lost its largest amount since the summer. In response to the huge sell-off of government debt yields reached their highest level in over four months.

Bartel’s report also described other sell-off activity of hedge funds. Money managers also tripled their shorts (bets against) 10-year Treasury note futures from $2.3 billion to $7.7 billion. Shorts were also enlarged for their 30-year Treasury bonds from $1.3 billion to $4 billion in just on week.

Bank of America/Merrill Lynch, Hedge Funds, Mary Ann Bartels, US Treasury futures,

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