Here is how a mysterious bet of the bonds has almost decreased

We have a huge bet in April-and an official in the Federal Reserve, now he says that it is likely that it has been the largest rise in the treasury yield for a long time since 1987.

Roberto Perley, who runs almost the Federal Reserve Council Securities portfolio of $ 6 trillionOn Friday, he said that the sudden relaxation of a popular trade is known as the trade that has spread is likely to exacerbate the liquidity crisis in April in treasury bonds.

The turmoil began after President Donald Trump announced the collection of a new tariff on April 2. Initially, investors rushed to the debts of the US government in a “classic flying to safety” trade. But a few days later, the cabinet revenues that have long been acutely date have been reflected; The return for 30 years BX: TMUBMUSD30Y increased approximately 50 basis points per week, The largest of this jump since 1987.

“One of the factors that seems to have contributed to this unusual pattern is the relaxation of the so -called alleged barter trade,” Perley, director of the open market account of the final system in New York, said in a speech on Friday.

Perley also indicated reports that investors who have been investigating were cautious through sudden moves in the treasury market.

Investors accumulated in the trade -off trade in early 2025, hoping to outperform the promised standard cancellation, especially for the banking sector.

This trade led to reverse results in April, which exacerbated the chaos in the treasury market of about $ 29 trillion, Marketwatch explained last month – Despite the large -scale reports at the classic time Treasury Market “The Foundation Trade” It was part of the problem. In his comments on Friday At the Federal Reserve Conference in Washington, Perley said there is no “evidence” of the dismantling of this basis.

Read: How did the “General Trade” in the bond market become a nightmare for investors after the Trump tariff

Instead, Perley pointed to reports that “many investors investors are in a position to take advantage of the decrease in treasury revenues from the longest maturity in relation to the barter of the equivalent ripening rate, partly due to the expectation to reduce the banking regulation that would enhance the demand for the cabinet on the cabinet.”