Analysis: Hedge funds are rapidly exiting safe-haven assets, pivoting towards Asia's oversold equities, U.S. Treasuries, and the consumer sector.

Odaily Planet Daily News The U.S.-Iran peace agreement will be officially signed this Friday, marking a major turning point in global markets. Hedge funds are rapidly exiting safe-haven assets, pivoting towards Asia's oversold equities, U.S. Treasuries, and the consumer sector in a bid to replicate the profit logic of the pre-war market. Currently, global hedge fund managers are 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 inflation, traders are significantly reducing their bets on a Fed rate hike. The yield on the two-year U.S. Treasury note has notably declined, offering a more stable allocation value compared to long-term bonds, as its safe-haven premium is being released.