Column: US bond futures, risk of market instability due to expanded positions of both buyers and sellers

July 16, 2024 at 3:03 PM GMT+9 (some excerpts)

Investors' positions surrounding US bond futures have swelled extremely, and anxiety that there is a risk that the liquidity and stability of the world's largest and most important bond market from the perspective of the financial system will be impaired has reached a scale where it seems to be rekindled.
In response to the deceleration in the inflation rate and the slowdown in economic activity, the US Federal Reserve (FRB) observed that there is a large possibility that interest rate cuts will start earlier than later, both “buyers” of asset management companies and “sellers” of leveraged funds have expanded in terms of US bond futures.