Hedge funds have become a much bigger presence in the U.S. Treasury market, holding a record share of marketable government debt while regulators focus on the leverage behind some of their biggest trading strategies.
Their long cash Treasury holdings reached about $2 trillion at the end of 2025, nearly three times the amount held five years earlier, according to the Office of Financial Research. Marketable Treasury debt increased 29% over the same period to $28.9 trillion, leaving hedge funds with a record 7% share of the cash Treasury market.
