Bulls Crowd Into Bund Futures as Put Premium Vanishes: Chart

Bund Bulls Seek Safety as Banking Woes Persist

Bulls have almost crowded out bears in Germany’s 10-year bund futures, seeking the safest and most liquid assets as concern persists over some of Europe’s biggest banks. The premium traders demanded for one-month contracts betting the futures will drop compared with wagers on an increase shrunk to 0.1 percentage point, from a six-month average of 0.77 percentage point, according to risk reversals as of 4:59 p.m. in London Monday. The skew hadn’t tipped in favor of bulls on a closing basis since June 24, the day the Brexit result was known.

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