Cayman Islands Hedge Funds Are Loading Up On U.S. Treasury Bills

The same trade I alerted to earlier in the week [link] - glad I don't have to live on a desolate Island to trade like a hedge fund manager. I hate the heat. No thanks! 

Why 90k Very Wealthy People Live On Island: Few natural resources. No natural source of fresh water.  Constantly battered by hurricanes. No Costco.  

Cayman Islands Hedge Funds Are Loading Up On U.S. Treasury Bills

This is the standout headline I spotted on the X platform this morning:

but this is nothing new. 

Like it or not, hedge funds are a permanent part of the Treasury market 

THE SCALE of the Treasury market is mind-boggling. Some $1trn in securities change hands each day. Trillions more are used as collateral for short-term loans. Financial institutions of all stripes are involved: banks, central banks, high-speed traders, insurers, endowments, pension funds, hedge funds and so on. (economist.com) 

So then, why are the usual suspects (@ barchart), and even CNBC [link], pumping this angle - this morning - on more than one platform? If you've been following this blog for any length of time, then you already know why... 

Now that the sell treasuries (short) trade has run its course, they've flipped the script. 

barchart US Treasury pump on Instagram 

Reminder: Barchart is the same outfit that was seen driving the recent coordinated route in S. Korean semiconductor stocks, and doing rug pulls on US tech, when S Korean markets were closed (holiday). [Read all about how: Chinese Reddit Traders Teamed Up To Help Create The Perfect Storm]   

To make a long story short: US Treasuries are being traded as part of the rotation we've seen pick up steam in nearly every other sector, and that's what I find truly mind-boggling.  

I've since raised the target on the 3X Treasury Bull $TMF - find the updated chart in the same place [stockcharts public hub] and we're already seeing the sellers covering their short positions.  

The 3X leveraged treasury bull rallies higher as short interest wanes $TMF 👇 pic.twitter.com/a68pGAb6zS

— Veteran Market Timer (@3Xtraders) September 30, 2026

Seeing Green Arrows 

 

P.S. Other things we're watching - related: 1. Possible setup for another rout in equites, on the return of the usual energy trade - rotation: 

$USO US crude oil pulls back, ahead of tomorrows trade. Think they are getting ready to pull the rug on tech stocks again. #AI #CrudeOil #Energy #Rotation #OnDeck pic.twitter.com/vryKdpuym9

— Veteran Market Timer (@3Xtraders) September 29, 2026

2. Possible shakeout in shares $MU Micron - ahead of tonight's earnings drop 
  

$MU Micron reports after tomorrow's close. pic.twitter.com/PoV2sURwSW

— Veteran Market Timer (@3Xtraders) September 29, 2026

P.P.S. Reminder: I'll be out for a short stretch (not in the Cayman Islands) but I plan to be back in time for the kick off of Q4 window dressing. Wouldn't miss it for the world!  

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