Hedge funds’ record Treasury bets risk sending a ‘shockwave’ through the global bond market, Apollo says

The record short bets against US Treasuries by hedge funds may lead to a sharp increase in yields, potentially causing a sell-off in the bond market, with possible spillover effects into other asset classes such as equities and commodities. This could result in a decrease in bond prices, particularly for US Treasury securities, such as TLT and TBF, and may also impact other fixed-income assets, like LQD and AGG.