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Hedge funds go hog wild on government bonds

As many market participants focused on the increased changes for a long-delayed interest rate hike, hedge fund managers loaded up on government debt.

As a whole, the industry bought 10-year Treasury notes at the fastest clip in more than five years, going long on the benchmark fixed income instrument despite expectations for monetary tightening at the Federal Reserve, according to Bank of America Merrill Lynch data.

The move to the 10-year, the strongest since August 2010, also came as hedge fund managers increased bets that the stock market would move higher.