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Hedge funds now hold a record share of the roughly $30 trillion U.S. Treasury market, a shift that analysts say has boosted liquidity but also raised concerns about potential financial instability. The heavy use of leveraged basis trades by hedge funds has drawn scrutiny from regulators worried about how the market would behave under stress. The development comes as Treasury yields have climbed to multi-year highs, intensifying focus on whether hedge fund positioning could amplify volatility in the world's most important bond market.