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One-way positioning against long-term bonds could unwind, Citadel warns
Citadel Securities strategist Frank Flight said crowded bearish positioning in long-term Treasuries could lead to a painful unwind if rates reverse.
MarketWatch reports that Citadel Securities strategist Frank Flight warned investors about the risks of being heavily positioned against long-term bonds.
Flight said the market appears to have a one-sided bet against longer-duration Treasuries, raising the possibility of a turnaround that could force investors to unwind positions.
The strategist cautioned that a rapid shift in the long-term rate outlook could be disruptive for those on the wrong side of the trade, depending on how crowded the positioning is.