Brent Crude Oil Hits $89.00 as Trend Funds Hold Record Short Positions

The price of Brent crude oil futures has reached $89.00 per barrel, marking a 1.33% increase on the day according to Bitget.

Trend funds have taken a massive short position in global bonds, with over $400 billion at stake.

Ahead of the upcoming US CPI release, UBS notes that every 1 basis point change in the 10-year U.S. Treasury yield has led to approximately $300 million in profit or loss exposure for CTAs, marking a record high since data compilation began.

Bank of America warns that if the data does not support a Fed rate hike in September, it could pose challenges to these crowded short positions, particularly given their large size and underweight positions among active funds.