Market Insider

Bond shorts at more than five-year high

Adam Gault | OJO Images | Getty Images

With the Street expecting higher interest rates this year, it's no surprise to see a considerable short in the Treasury market.

But bond investors are the most short duration against their benchmark now than they have been since 2008, according to a recent Stone & McCarthy money manager survey.

As the Fed moved toward tapering its bond purchases, Wall Street became increasingly short Treasurys. Many strategist expect the 10-year yield to move to 3.5 percent or a bit higher this year. Investors are betting on an improving economy and expect the Fed to continue to unwind QE.