A bit of a red flag here, spotlighted by Bank of America Merrill Lynch analysts in their weekly Hedge Fund Monitor note. It seems that the fast money crowd has been piling into 30-year Treasury bond futures lately. As diehard market geeks know, the 30-year bond sees the biggest price changes based on relatively small changes in interest rates. So buying the long bond is one of the most effective ways to bet on a drop in interest rates.
And that’s what hedge funds have been doing lately, BofA Merrill analysts write, citing the weekly Commitment of Traders report issued every Friday by the Commodities Futures Trading Commission....MORE
Tuesday, May 29, 2012
Heads-up: "Hedgies Pile Into Long Bonds"