Discussion Paper

Decomposing Hedge Funds' U.S. Treasury Exposures


Abstract: Between 2023 and September 2025, large hedge funds' gross U.S. Treasury exposures doubled to $4.0 trillion, comprising $2.4 trillion in long exposure and $1.6 trillion in short exposure. This growth outpaced that of the broader Treasury market, with hedge funds' Treasury securities holdings increasing from about 4.5 percent to about 8.5 percent of total outstanding Treasuries.

https://doi.org/10.17016/2380-7172.4082

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Bibliographic Information

Provider: Board of Governors of the Federal Reserve System (U.S.)

Part of Series: FEDS Notes

Publication Date: 2026-06-22

Number: 2026-06-22-1