Hedge Funds Get Squeezed As Bond Bulls Roar Back On Fed's Dovish Tone
Portfolio Pulse from Piero Cingari
Hedge funds have been caught on the wrong side of the Treasury market as bond prices rallied due to a combination of factors including the Federal Reserve's decision to keep interest rates steady and a slump in employment growth. The iShares 20+ Year Treasury Note ETF (NASDAQ:TLT) and the U.S. Treasury 10 Year Note ETF (NYSE:UTEN) have seen substantial gains. Market speculators now suggest a greater likelihood of a rate cut in 2024.
November 06, 2023 | 2:50 pm
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POSITIVE IMPACT
The iShares 20+ Year Treasury Note ETF (NASDAQ:TLT) recorded a substantial gain of 3.9% over the past week due to the bond market rally.
The bond market rally, triggered by the Federal Reserve's decision to keep interest rates steady and a slump in employment growth, has led to a substantial gain for the iShares 20+ Year Treasury Note ETF (NASDAQ:TLT).
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
The U.S. Treasury 10 Year Note ETF (NYSE:UTEN) has rallied by 3% following a drop in 10-year Treasury yields from 5% to 4.6%.
The drop in 10-year Treasury yields from 5% to 4.6% has led to a rally for the U.S. Treasury 10 Year Note ETF (NYSE:UTEN).
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90