Treasury Selloff Cascade: Basis-Traders On Edge As Surging-Rates Spark Bond Liquidation Fears On Unforeseen "Quirk"

Barclays Andres Mok and his Interest Rate Derivatives team have noticed a relatively rare - but not inconsequential - technicality that is looming in the bond futures market.

With record exposure on both the long side of the futures market (asset managers) and short-side (hedge funds), the fine print of the futures contract is very much coming into focus.

treasury selloff cascade basis traders on edge as surging rates spark bond liquidation fears on unforeseen quirk

Authored by Tyler Durden via ZeroHedge September 29th 2023