Bond traders bet big on U.S. Treasuries amid Fed rate cut expectations

According to ChainCatcher, bond traders are betting heavily on the U.S. Treasury market in anticipation of the Federal Reserve’s first interest rate cut.

The number of leveraged positions in U.S. Treasury futures has risen to a record high ahead of the Jackson Hole central bank symposium on Thursday.

Open interest rose to the equivalent of nearly 23 million 10-year Treasury futures contracts last week, a record, equating to about $1.5 billion in risk per basis point move, according to CME Group data and institutional analysis.