Hedge funds skipped the April dip and loaded up on bond shorts. A massive squeeze could be brewing, with yields at risk of collapsing as both the trade war and debt crisis turn deflationary.
April came with blood on the screen. Stocks sold off, yields surged, and the Fed kept its poker face. Retail panicked. But one group didn’t buy the dip: hedge funds. They saw the trap. Or at least they thought they did. They didn’t touch equities. Instead, they went after bonds …