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[@fivedragontiger](/creator/twitter/fivedragontiger)
"The pressure for a large-scale unwinding of basis trades is building rapidly in 2025 due to several interacting forces within the Treasury and repo markets. First the end of the rate-hike cycle has caused Treasury prices to rebound as yields decline. While this might seem positive for most bondholders it actually hurts hedge funds engaged in basis trades because their strategy involves being short Treasury futures. As futures prices rise those short positions generate losses eroding profitability and forcing funds to reassess or unwind their trades. Second repo rates the cost of borrowing"  
[X Link](https://x.com/fivedragontiger/status/1979758724727308345) [@fivedragontiger](/creator/x/fivedragontiger) 2025-10-19T03:57Z 7651 followers, 12.7K engagements


"On the surface it may seem that the situation can be controlled through the Standing Repo Facility. The real problem however lies in the unseen shadow system in the Cayman Islands"  
[X Link](https://x.com/fivedragontiger/status/1979769741624664468) [@fivedragontiger](/creator/x/fivedragontiger) 2025-10-19T04:41Z 7651 followers, 1556 engagements