Net Short Betting have against US government bonds Reportedly up to the highest level in the last year in the week ending last Tuesday.

What happened: According to the latest report by Commodity Futures Trading Commission, Net short leveraged fund positions in 10-year futures rose nearly 150,000 contracts in the week ended last Tuesday, marking the largest bearish move since March 2022, reported Bloomberg.

Also read: How to invest in startups

Fast-money funds appear to be taking temporary bets against longer-dated bonds, having suffered during the recent volatility of the banking crisis when they took positions in anticipation of a sell-off in shorter-dated bonds, the report said.

Treasury yields rose on Friday after US labor data raised expectations that the federal reserve will raise interest rates by 25 basis points in May. The work department reports that the US economy added 236,000 jobs in March, just barely by economists An estimated 240,000 new jobs.

rate path: Traders are currently betting that the central bank will hike rates again in May as the US economy shows resilience despite the crisis in the banking sector, the report said. The CME FedWatch tool shows a 66% probability of a 25 basis point rate hike in the next policy.

The 10-year bond returned 3.37% during Asian trade Monday morning, up from Friday’s low of 3.25%. The ProShares Ultra 20+ year treasury PRACTICES gained over 6.5% in the last five days during the Vanguard Total Bond Market Index Fund ETF BND increased by over 1% over the period.

Expert Opinion: Goldman Sachs Group analysts, incl Praveen Korapatywrote in a note that while US yields rose again after the jobs report, they remained below the previous week’s levels, leaving room for further upward revisions, according to the Bloomberg report.

“The mix of March data so far should bolster the case for a hike at the upcoming May FOMC meeting,” they wrote.

ANZ research said in a note that the Fed’s March inflation forecast update looks understated. “The Fed has…