CTA Shorting of G10 Rates Hits Historical Extremes; German Bonds Lead in Short Position

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CTA shorting interest rates has hit historical extremes, with German bonds leading the way. Vanda data shows trend-following funds have fully shorted G10 government bond futures, with extreme short exposure in 5-year, 10-year, and 30-year German bonds. Funding rates are factored into these positions, as the net short position on G10 interest rates reaches a record high. Barchart notes the alignment among systematic funds betting on higher yields and lower bond prices.
ME AI message: According to Vanda’s latest CTA fixed income position data, trend-following funds are currently fully short on G10 major government bond futures, with the largest short exposure in German bonds, where 10-year, 30-year, and 5-year German bond positions have reached extreme levels. Barchart reports that the overall net short position of CTAs on G10 interest rates has reached an all-time high. This indicates that systematic funds are uniformly betting on further declines in bond prices and continued rises in government bond yields. (Source: Wall Street Journal)
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