BIS Warns on The Current Build-up of Short Positions in $25Trillion US Treasury Futures Market

The Bank for International Settlements (BIS) warns of potential instability in the $25tn US Treasuries market due to leveraged bets by hedge funds. Short positions in Treasury futures are hitting alarming levels, around $600bn. Such high leverage, if unwound abruptly, could cause significant market disruptions. Recent historical events have shown the consequences, and multiple financial bodies are expressing similar concerns. The stability of the massive Treasury market is at risk.