According to Bloomberg, which cites data from the Commodity Futures Trading Commission, leveraged funds became net short US 10-year Treasuries at the end of May. This is the first time the funds as a group have been bearish since January 2021. The 3% level is proving a tough psychological barrier for 10-year notes, and a move above could signal further declines. That seems to be why funds are positioning for a breach of this level. Momentum traders will be able to capitalize on a move higher if the 3% benchmark is broken down. Bloomberg reports that the risks for yields…
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