News about US Treasuries

Bank of England deputy governor Sarah Breeden told CNBC that hedge funds' growing role in government bond markets makes a shock in one market more likely to spread to others. She said these funds are price-sensitive, leveraged and international, and have increasingly become core bond investors, taking over from insurers and pension funds. The IMF estimates hedge fund gross assets at about $13 trillion and warned that leverage and crowded trades could amplify stress in turbulent times. The article notes that hedge funds held a record 7% of the $30 trillion US Treasury market at the end of 2025, and that basis trades are under closer scrutiny after the sharp sell-off in sovereign debt.