(Bloomberg) -- The divergence in how hedge funds and long-only asset managers are approaching the U.S. Treasury market is at its widest point since July 2020.
That's based on positioning data from the Commodity Futures Trading Commission showing that as of April 26, asset managers had a net long position across Treasury futures equivalent to nearly 4 million 10-year note contracts. Hedge funds had a net short position equivalent to 3.8 million contracts -- an apparent driver of the historic selloff in U.S. government debt this year.
Another measure of market sentiment, JPMorgan Chase & Co.'s weekly Treasury Client Survey, released Tuesday, found a decline in the number of shorts that boosted the net position to -9, the least negative since April 2021.
The positioning shifts are occurring as U.S. rates traders brace for Wednesday's Federal Reserve policy decision, with swaps priced for the first half-point rate increase since 2000.
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