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Hedge funds are holding a record 7% of the $30 trillion Treasury market

Their cash Treasury holdings hit $2 trillion at end of 2025, nearly triple their level five years earlier, raising leverage and stability concerns

Michael M. Santiago / Getty Images

Hedge funds have accumulated a record share of the U.S. Treasury market, stepping in as some traditional long-term investors pull back, even as regulators warn that their reliance on leverage could amplify instability during periods of stress.

According to the U.S. Office of Financial Research, as cited by CNBC, hedge funds held $2 trillion in cash Treasurys at the close of 2025. That figure is nearly three times their level five years earlier. Against a marketable Treasury debt total of $28.9 trillion, that translated to an all-time high share of 7% for hedge funds.

More recent Federal Reserve data shows the buying continued into 2026. Domestic hedge funds were net buyers of $26.4 billion worth of Treasurys in the opening quarter of........

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