Treasury Futures Positions Hit New Extremes

Treasury Futures Positions Hit New Extremes

Assessment

Interactive Video

Business

University

Hard

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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.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

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

No significant position

Neutral position

Record long position

Record short position

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

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

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

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

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

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

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

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