Bond Trader Places Record Futures Bet on Eve of Inflation Data
- 75,000 block trade in December SOFR futures is biggest ever
- Wager helped drive gains for front-end Treasuries Tuesday
A block trade in US short-term interest-rate futures Tuesday was the biggest on record and helped drive gains for the Treasury market.
The trade involved futures on the Secured Overnight Financing Rate, the successor product to eurodollar futures, which were retired last year. Launched in May 2018, SOFR futures have taken over as the principal tool for wagers on the interest rate set by the Federal Reserve.