The latest CFTC Commitments of Traders (CoT) report shows a clear divide: asset managers have taken a long position, while hedge funds have gone short.
This split highlights contrasting strategies and market outlooks. Asset managers, often focused on longer-term gains, may be betting on interest rates stabilizing or falling. Hedge funds, known for speculative moves, appear to anticipate rising rates. This divergence underscores the ongoing uncertainty in financial markets, with each side positioning for distinct economic scenarios.
Interesting divergence playing out in net positioning on US 2-year note futures (CFTC data)….
AM's record LONG, Hedge Funds record SHORT. Yep, basis trades can distort leverage positioning, but still….👀 pic.twitter.com/plW53XjmQp
— Edward Bolingbroke (@EddBolingbroke) October 25, 2024
Source:
CFTC Commitments of Traders (CoT) report.
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