BondsMedium•2 October 2026•
1 min read
Quant Hedge Funds Reap Record Profits from Global Bond Market Rout
Key Facts
1Trend-following hedge funds have secured significant gains following a sharp rise in global bond yields.
2Inflation fears fueled by the war in Iran and strong US economic data pushed bond yields to their highest levels since 2002.
Trend-following hedge funds have secured significant gains following a sharp rise in global bond yields. The Financial Times reported that quantitative funds reaped substantial profits by employing trend-following strategies as the global bond market sell-off accelerated.
Inflation fears fueled by the war in Iran and resilient US economic data pushed bond yields to their highest levels since 2002. This surge in yields comes amid a backdrop of firm manufacturing orders and consumer sentiment data reported in the United States during September 2026.