Hedge funds reload UK rates bets after euro-led rout
Traders slowly returning to sterling market after ECB comments caused front-end and curve stop-outs
Hedge funds are cautiously re-entering positions in sterling rates a little more than a week after a surprisingly hawkish European Central Bank meeting triggered a violent selloff that wiped out steepener trades and front-end long positioning.
“A few people are coming back in, especially now you’ve had the Fed and the Bank of England out of the way,” says Tom Prickett, head of G10 rates trading
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