Speculators have been building up a “historically massive” short position in U.S. Treasury futures ahead of what could be $1 trillion of new debt issuance on the heels of a debt-ceiling resolution, according to Macquarie’s sales and trading global macro strategy desk.
Bond speculators have been taking up a large number of short positions in 2-year, 5-year and 10-year Treasury futures TY00 (see chart), according to the Macquarie team, which pinpointed the combined tally of contracts at nearly 3 million as of late May, or…
