More Rate Hikes Ahead? Hedge Funds Keep Shorting T-Bills Relentlessly
Portfolio Pulse from Bhavik Nair
Hedge funds continue to short short-term Treasury Bills, suggesting the Federal Reserve's rate hiking cycle may not be over. Leveraged investors increased their net-short two-year Treasury positions for an eleventh straight week. The iShares 1-3 Year Treasury Bond ETF (SHY) and the Vanguard Short-Term Treasury Index Fund ETF (VGSH) both experienced losses during this period.
June 12, 2023 | 7:28 am
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NEGATIVE IMPACT
The iShares 1-3 Year Treasury Bond ETF (SHY) experienced a 1.08% loss as hedge funds continue to short short-term Treasury Bills, suggesting potential rate hikes ahead.
As hedge funds continue to short short-term Treasury Bills, it indicates that they believe the Federal Reserve's rate hiking cycle may not be over. This has a negative impact on the iShares 1-3 Year Treasury Bond ETF (SHY), which experienced a 1.08% loss during this period.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The Vanguard Short-Term Treasury Index Fund ETF (VGSH) experienced a 1.09% loss as hedge funds continue to short short-term Treasury Bills, suggesting potential rate hikes ahead.
As hedge funds continue to short short-term Treasury Bills, it indicates that they believe the Federal Reserve's rate hiking cycle may not be over. This has a negative impact on the Vanguard Short-Term Treasury Index Fund ETF (VGSH), which experienced a 1.09% loss during this period.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80