Core Viewpoint - The Bank of England warns of a potential forced selling wave in the UK bond market due to high leverage among hedge funds, highlighting the fragility of the market environment and the possible negative implications for Chancellor Rachel Reeves [1] Group 1: Market Dynamics - Hedge funds are increasingly influential in the UK bond market, with their rapid exit potentially leading to a repeat of the extreme sell-off seen during former Prime Minister Liz Truss's brief tenure [1] - Hedge funds have borrowed a record £77 billion (approximately $105 billion) through UK bond repurchase agreements, adding leverage to relative value strategies, including so-called basis trading [1]