A global surge in yields is threatening to cause a disruption in the Treasury futures market — the principal tool for hedging US government bonds — as traders stand to overhaul their positions.
Traders of CME Group Inc.’s futures contracts, especially those that track the Treasury’s longest-maturity bond, are at risk as rising oil prices stoke concern about inflation, sending yields higher. The US 30-year’s topped 5.1% on Friday, the highest level in about a year.
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