Hedge Funds Own 7% of Treasurys: What Happens If Basis Trades Unwind?
Hedge funds held a document 7% of tradable US Treasurys at end-2025, in a market price roughly $30 trillion. Regulators warn the leverage behind these positions might amplify turmoil within the Treasury market. The Office of Financial Research (OFR), a Treasury Department unit, put their money Treasury holdings at $2 trillion. That is sort of…
