Fed intervention could come soon amid bond market turmoil - Jefferies
In the midst of turmoil in the bond market, Jefferies warns of imminent Fed intervention. Market Volatility and Treasury Yields
Unwinding of the $1 Trillion Basis Trade The reversal of hedge funds' $1 trillion "basis trade" is a significant contributor to the current market instability. This strategy involves borrowing funds to purchase U.S. government bonds while simultaneously selling futures contracts on those bonds to exploit minor price differences. Due to the trade's rapid liquidation and high leverage, long positions have increased.