New Delhi, Oct. 1 -- Hedge funds are becoming a bigger force in the roughly $30 trillion US Treasury market, raising a new question for investors: what happens if these funds suddenly rush for the exit?

Hedge funds held about $2 trillion in cash Treasurys at the end of 2025, nearly three times their level five years earlier, according to the Office of Financial Research, cited by CNBC. That amounted to about 7% of the $28.9 trillion in marketable Treasury debt-a record share.

Their buying has continued in 2026 too. Domestic hedge funds bought a net $60.6 billion of Treasurys in the second quarter, after $26.4 billion in the first quarter, taking their first-half purchases to about $87 billion.

The growing presence comes as the Treasury...