Analysis: Hedge funds are rapidly withdrawing from safe-haven assets and shifting to oversold Asian stocks, US Treasuries, and the consumer sector.

Odaily reports that the US-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 and shifting to oversold Asian stocks, US Treasuries, and the consumer sector, aiming to recreate the pre-war market's profit logic. At present, global hedge fund managers are all consulting the "pre-war playbook" in an attempt to capture the first round of premiums after inflation eases.

In the bond market, hedge funds are actively betting on the Federal Reserve's "hawkish pivot." Both Florida's Grey Value Management and Singapore's Reed Capital are bullish on short-term US Treasuries. Analysts believe that as falling oil prices have eased cost inflation, traders are significantly reducing bets on further Fed rate hikes. Currently, yields on two-year US Treasuries have clearly declined. Compared to longer-term bonds, the release of the risk premium in short-term bonds provides more robust allocation value.