Hedge funds now own a record 7% of the $29 trillion U.S. Treasury market, with holdings reaching $2 trillion by the end of 2025. Their growing presence helps provide liquidity amid declining long-term investor interest but also raises concerns about financial stability due to high leverage and aggressive trading strategies like basis trades. Regulators warn that sudden deleveraging by hedge funds could trigger market volatility and systemic risks, especially during periods of stress. Despite risks, hedge funds play a key role in maintaining market liquidity and correcting pricing inefficiencies, making their involvement both beneficial and potentially risky for the Treasury market's future.
Hedge funds' record share in the $29 trillion U.S. Treasury market provides context for the broader market environment. For readers following U.S. stocks, here is Pluang's market snapshot as of Sep 30, 2026 05:21 WIB: out of 150 priced US stocks, 68 rose and 82 fell. Notable movers include Carvana Co (CVNA) at USD 63.70 with a 1-day change of +5.29%, Marvell Technology Inc (MRVL) at USD 263.89 up 4.76%, and NIO Inc. (NIO) at USD 3.42 down 4.74%.
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Cosmos Labs has developed a Tokenization Suite that connects banks' existing core ledgers and tokenized-deposit systems with Swift's blockchain-based shared ledger. This integration allows financial institutions to offer 24/7 cross-border payments wi...
Abracadabra has proposed liquidating its decentralized lending protocol, which would result in MIM stablecoin holders recovering only about 4 cents per dollar of debt, reflecting a 96% loss. The proposal estimates recovering $900,000 in assets agains...
Abracadabra DAO is voting on a proposal to close its lending protocol and liquidate the Magic Internet Money (MIM) stablecoin due to $21 million in bad debt causing severe undercollateralization. The stablecoin's backing is now worth less than 4 cent...
China's commerce ministry has warned the European Union that it will respond firmly if the EU imposes restrictions on Chinese businesses or products. This warning comes ahead of high-level trade talks scheduled in Beijing next week, as Europe aims to...
