US Treasury volatility highlights repo market risks
Yields spiked overnight as tariffs came into effect, piling pressure on heavily leveraged hedge funds
Market moves over recent days carry echoes of the “dash for cash” during the Covid-19 crisis, as US Treasury yields have suffered several sudden spikes.
Highly leveraged investors such as hedge funds have faced severe pressure since the US administration unveiled tariff plans on April 2, but so far appear to have weathered it better than in 2020.
However, moves in longer-dated Treasuries on April 7 and again today (April 9) were dramatic, and many hedge funds have built up positions that are much
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