Bond Market Nears ‘Inflection Point’ After War-Related Selloff

A wave of bond traders unwinding US Treasury futures that drove the selloff after the war in Iran shock is reported to be running its course. The market now faces a new phase of directional wagering that will determine if the rout reverses or deepens, implying continued elevated volatility and sustained risk-off positioning in rates and derivatives markets.

Analysis

A wave of bond traders unwinding US Treasury futures that drove the selloff after the war in Iran shock is reported to be running its course. The market now faces a new phase of directional wagering that will determine if the rout reverses or deepens, implying continued elevated volatility and sustained risk-off positioning in rates and derivatives markets.