US government debts are sold with hedge boxes reduce risk

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The debts of the US government were sharply sold on Monday with a decrease in risk hedge funds in their strategies, and investors continued to turn into criticism during a third day of severe disturbance in Wall Street.

The treasury revenue jumped for 10 years in the scales 0.19 percentage points on Monday to 4.18 percent, which is the largest daily rise since September 2022, according to Bloomberg data. The return jumped for 30 years 0.21 degrees Celsius, which is the biggest step since March 2020. The return rises when the prices decrease.

Decline Monday Treasury bonds -It is highlighted by low-risk assets that usually sparkle during periods of turmoil in the market-How US President Donald Trump continues last Wednesday with sharp tariffs against trading partners in echo throughout Wall Street. The shares fell sharply on Thursday and Friday, when the market value was 5 meters, but investors initially resorted to treasury bonds.

The market participants said that the decline in the treasury market of 29 trillion on Monday reflected several factors, including Hedge boxes Reducing the leverage – or borrowing used to enlarge trading – and wider cash payment as investors are protected from fluctuations in the wider market.

Jennadi Goldberg at TD Securities said this step reflects “everything, everywhere every time.” He added: “Multi -position money is trying to clarify it, which leads to a” sale of everything. “

Investors and analysts in particular referred to hedge funds that have benefited from small differences in the price of the treasury and the future contracts associated with it, known as “basic trade”. These money, which are senior players in the steady income market, do not drop these situations because they cut the risks, which leads to the sale in the treasury bonds.

One of the hedge fund managers said: “The hedge funds were classified to filter the basis of the American treasury fiercely.”

The movements were not limited to hedge funds. In all fields, investors in all fields sold treasury bonds to raise money, with one fixed -income trading merchant indicating traditional asset managers.

“I think investors are moving to cash assets and cash assets to overcome market fluctuations,” said Ed Al -Husseini, chief price analyst in Colombia Investments.

Al -Hasi said: “The simplest interpretation (with regard to the movement in the returns) is that investors sell their power.

The director of hedge funds, which were attributed to revenues, said that the scope of selling the broad hedging fund was “destroying” liquidity-or the ability to buy and sell assets easily-through the treasury and high-quality companies and securities filled with mortgage.

The person said: “There is a tremendous occurrence, which is exploited by any source of liquidity.”

Additional reports by Costas Mourselas and Leslie Hook