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

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by Tyler Durden
Friday, Sep 29, 2023 - 05:25 PM

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.