Analysis: Hedge funds are rapidly exiting safe-haven assets, pivoting to oversold Asian equities, U.S. Treasuries, and consumer sectors.

Odaily Odaily reports that the U.S.-Iran peace agreement will be officially signed this Friday, marking a major turning point for global markets. Hedge funds are rapidly exiting safe-haven assets, pivoting to oversold Asian equities, U.S. Treasuries, and consumer sectors, in an effort to recreate the profit logic of the pre-war market. Currently, global hedge fund managers are frantically dusting off the "pre-war playbook," attempting to capture the first wave of premiums following the retreat of inflation.

In the bond market, hedge funds are actively betting on the Federal Reserve's "hawkish pivot." Grey Value Management in Florida and Reed Capital in Singapore are both bullish on short-term U.S. Treasuries. Analysts believe that as falling crude oil prices ease cost-push inflation, traders are significantly reducing their bets on Fed rate hikes. The yield on the two-year U.S. Treasury note has already retreated notably. Compared to longer-dated bonds, the release of its safe-haven premium offers more robust allocation value.