Trends funds are heavily betting on stubborn inflation, while record short positions in bonds await tonight's CPI "judgment"!

According to the Zhito Finance APP, on the eve of the release of the US inflation data for July tonight, a historic tug-of-war between bulls and bears is unfolding in the global bond market. Data from UBS Group shows that commodity trading advisors (CTAs) tracking market trends have doubled their short positions in bonds by the end of July compared to two weeks prior, and these bets have remained elevated since then. UBS strategist Nicolas Le Roux estimates that for every 1 basis point change in the 10-year US Treasury yield, the CTAs have a profit and loss exposure of approximately $300 million, marking the highest level since the bank began tracking this data in 1990.