Block Traders Are Strong-Arming the Tamest Bond Market Ever Seen
- Block trades in Treasury futures are seen driving yield moves
- BlackRock cites ‘couple of big buyers’ for 30-year bond rally
BlackRock's Rieder Sees Pull to Treasury Curve's Back End
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By just about any measure, trading in Treasuries has never been more tranquil. Yet beneath the surface, an explosion of bets in futures is buffeting the $14 trillion market.
Block trades, which are large, privately negotiated transactions, have turned into a force to be reckoned with as volumes have subsided in the U.S. summer months and as neither the Federal Reserve nor Capitol Hill has been able to shock markets out of their torpor. Now more than ever, investors say, the blocks are big enough to jolt prices and push wagers into or out of the money, luring traders who seize on the momentum and magnify the move.