Bond Traders Reload Bets on Higher Yields After Massive Rally
- Futures block sales seen in Asia, London and now US sessions
- New shorts eyed after over 20bp move lower in yields post-CPI
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Rates traders are piling back into bets on higher US Treasury yields after a huge rally on Tuesday gave them a more attractive entry point.
Wednesday’s session kicked off in Asia with a flurry of large, privately negotiated transactions known as block sales in the futures market linked to Treasury bonds. Block sales in Asia’s session were followed by further short wagers on five-year and Ultra 10-year contracts in New York trading as yields rose after a stack of mixed economic data at 8:30 a.m.