Treasury Futures Positions Hit New Extremes

The video discusses extreme positioning in Treasury futures linked to longer-dated Treasurys before the election. Asset managers hold record long positions, while speculative funds have record short positions. The outcome of the election, particularly a blue sweep, could impact yields and benefit speculative funds. The Federal Reserve's potential intervention in response to rising yields is also considered.

What is the current positioning of asset managers in Treasury futures?

• No significant position

• Neutral position

• Record long position

• Record short position

How might a blue sweep in the election affect Treasury yields?

• Yields would decrease

• Yields would remain unchanged

• Yields would increase

• Yields would become volatile

Which group is likely to benefit if yields rise due to fiscal expansion?

• Retail investors

• Asset managers with long positions

• Foreign investors

• Speculative leveraged short funds

What is the Federal Reserve's current stance described as?

• A bear at the long end of the curve

• A dove at the short end of the curve

• An elephant at the short end of the curve

• A hawk at the long end of the curve

What might the Federal Reserve do if yields start to climb?

• Reduce market intervention

• Sell longer-dated futures

• Increase interest rates

• Step in with quantitative easing