Biggest Bund Rally Since 2016 Looks Like Unfinished Business
- Highest premium since 2018 on one-month bund calls over puts
- Haven rally for Europe’s safer bonds tracks Treasuries advance
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The biggest German bond rally in four years may have further to go, according to derivatives pricing.
Demand for options betting on bund gains continued to outpace the equivalent bearish positions Monday, extending a trend that gained momentum throughout last week. It has pushed the premium on one-month call contracts over puts to levels unseen since May 2018. A similar three-month gauge is indicating the most bullish sentiment since September.