Bond Bears Pummeled by Frenzied Futures Trading for Second Day
- Treasury futures climb on block trade, echoing Thursday surge
- Apple report, emerging-market turmoil caught out investors
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A second day of frantic trading in Treasuries futures offered a stark reminder of the danger of betting against the world’s safest asset.
A block trade of over 24,000 10-year Treasury futures, the equivalent of $2.1 billion of cash bonds changing hands, was unusually large for the time of day in early London hours. This mirrors the three minutes of chaotic moves seen Thursday where Treasuries suddenly surged as turmoil in emerging markets spooked global investors. Benchmark yields, which had been attempting to breach the key psychological level of 3 percent, have swiftly retreated.