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Traders increase bets that bond selloff is nearing an end

Options market activity points to growing demand for strategies tied to a bond rally after a recent selloff.

Reported · Written up by our desk · Central Banks

CNBC Markets says options traders are increasingly positioning for a potential shift in the bond market, suggesting the recent selloff could be losing steam.

The outlet frames the activity with the longstanding Wall Street idea that equity markets can benefit when bond conditions improve.

As a result, traders are placing larger bets through options structures that would profit if bond prices stabilize or rise, rather than continue falling.

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