The tumult in Treasuries: are hedge funds partly to blame?

The largest market in the world, US Treasuries, went bananas after the collapse of Silicon Valley Bank, leaving hedge funds with losses and throwing out unreliable information about what central banks will do next.

March 18, 2023 . 4:38 PM

1 min read

US Treasury debt prices jumped after Silicon Valley Bank's collapse.
The market reaction in Treasuries was apocalyptic, with yields dropping by 0.56 percentage points.
The growing role of non-bank traders, especially hedge funds, in the market is clear.
Hedge funds were caught in a classic short squeeze, leaving many with losses.
The bond market is throwing out unreliable information about what the Fed and other central banks will do next.