Hedge funds now hold $2.35 trillion in US Treasury securities (~7% of the market), up 154% over five years, driven by leveraged cash-futures basis trades.
Macro & Markets ·
Hedge fund holdings of US Treasury securities reached $2.35 trillion in the first quarter of 2026, representing roughly 7 percent of the marketable Treasury market and reflecting a 154 percent increase over five years. The surge, driven largely by leveraged cash-futures basis trades that exploit small price discrepancies, has outpaced the 44 percent growth in total marketable Treasury debt outstanding over the same period. These trades allow hedge funds to absorb significant volumes of Treasury supply using leverage, filling capacity constraints at traditional market intermediaries.