Bond Traders Add to German Short Bets Before Rates Rise Further
- Open interest in German bond futures soars along with yields
- Bund futures preferred duration-risk hedge, says Commerzbank
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Bond traders are girding for the fallout from the region’s economic recovery by buying protection against rising German yields.
As bunds slumped this week, investors piled into new short positions using 10-year futures contracts. Longest-maturity bonds bore the brunt of the adjustment, with traders hedging their exposure to securities most exposed to higher interest rates.