The Smallest Gap in Action
Speculators and institutional investors usually have opposite strategies. Some try to make money on price changes, while others hedge their risks in more reliable assets. Now, however, the strategies of these two groups seem to have found their balance.
According to the Commodity Futures Trading Commission, the number of open positions is currently at a minimum level. This may indicate that investors are uncertain about the market.
What Was the Reason?
On October 2, Goldman Sachs Group Inc. advised investors to cut US bonds 10-year relative to their two-year and 30-year counterparts by more than 10-year bonds.
Traders have placed direct bets on steepness, a scenario that has been strengthened as polls and betting areas indicate that the chances of ex-Vice-President Joe Biden to beat President Donald trump are improving and the chances of more stimulation have improved.