Global macro hedge funds have switched from the bullish equity bets that have been part of their strategies for most of the year to bearish positions, while commodity trend advisers (CTAs) have upped their short positions, according to a report by Reuters.
The report cites a note by Barclays' US equity strategies team as highlighting that global macro hedge funds are likely seeing equities repricing lower as 10-year Treasury yields have spiked to around 5%. The S&P is down roughly 9% since hitting a peak at the end of July.
CTAs, which were already bearish on equities, have upped their short positions, according to Barclays, and are also bearish on most other assets including US Treasuries, JGBs and Bunds, but remain long oil.
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