Markets are expecting turbulent trading in the wake of Thursday’s key inflation data as investors recalibrate big bets on Treasuries that helped spur 2023’s year-end bonanza.
Traders have trimmed their wagers on US bond gains this month and instead added bets that stand to benefit from any slide in Treasuries. While the consensus is still skewed toward the rally continuing, market positioning is now the most neutral in four months, according to a JPMorgan Chase & Co. survey of clients. That backdrop suggests many investors are waiting to pick a side — long or short — when the next act for bonds becomes clearer.
