Hedge funds hold $2 trillion in US debt, but their next trade could require fewer bonds

T2Covered by 1 source · first reported by The Defiant / DL News / Protos / CryptoSlate at 25 Oct, 13:00 UTC

Hedge funds held an estimated $2 trillion in cash US Treasuries at the end of 2025, or about 7% of the marketable debt outstanding, according to the Office of Financial Research. Much of that buying is tied to trades designed to earn small differences between bond and derivatives prices, which…