TFTC on Nostr: Hedge fund Treasury holdings: $2.35 trillion, up 154% in 5 years. They now own a ...
Hedge fund Treasury holdings: $2.35 trillion, up 154% in 5 years. They now own a record ~7% of the marketable Treasury market.
Why? The basis trade, arbing tiny price differences between cash bonds and futures using heavy leverage.
Banks can't absorb enough new supply, so levered hedge funds are filling the gap.
The US Treasury market is increasingly dependent on a crowded, leveraged trade to function.
h/t (KobeissiLetter)
Published at
2026-09-18 13:41:30 UTCEvent JSON
{
"id": "312e495ec75a89a4a290c1e9ac82c131c1965b7a620446658335e95e64135fa9",
"pubkey": "85bdb5875e113dcc99498b474636449882ee15a1c78154ab07c065b47339d672",
"created_at": 1789738890,
"kind": 1,
"tags": [
[
"imeta",
"url https://blossom.primal.net/739332248ae4a10439969d3d4e3fd518a854768f2671db3fc027bddbeab555c9.jpg",
"m image/jpeg",
"x 739332248ae4a10439969d3d4e3fd518a854768f2671db3fc027bddbeab555c9",
"dim 1200x803",
"size 66943"
]
],
"content": "Hedge fund Treasury holdings: $2.35 trillion, up 154% in 5 years. They now own a record ~7% of the marketable Treasury market.\n\nWhy? The basis trade, arbing tiny price differences between cash bonds and futures using heavy leverage.\n\nBanks can't absorb enough new supply, so levered hedge funds are filling the gap.\n\nThe US Treasury market is increasingly dependent on a crowded, leveraged trade to function.\n\nh/t (KobeissiLetter)\nhttps://blossom.primal.net/739332248ae4a10439969d3d4e3fd518a854768f2671db3fc027bddbeab555c9.jpg",
"sig": "021d3d2076ea5b025a382edc62fd10431a0b75a602890f2d29afa8dc645053860c742d0dc4d4ce2c9936eb58648d8bf904551a53621ec547cd193fddadd082a6"
}
