Hedge funds return to JGB flatteners after brutal stop-outs

Funds bet repatriation of assets by Japan’s pension funds will driver further long-end yield compression Hedge funds are piling back into curve flattener trades on Japanese interest rates, despite repeated losses on the exposures over the last two years.A senior rates trader at one US bank in Tokyo says traders revived bets after the front end of the curve sold off aggressively since late August, causing the gap between two- and 30-year Japanese government bond (JGB) yields to narrow by 25 basis Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe You are currently unable to print this content. Please contact info@risk.net to find out more. You are currently unable to copy this content. Please contact info@risk.net to find out more. Copyright Infopro Digital Limited. All rights reserved.You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.If you would like to purchase additional rights please email info@risk.net Sorry, our subscription options are not loading right now Please try again later. Get in touch with our customer services team if this issue persists. New to Risk.net? View our subscription options If you already have an account, please sign in here. Most read articles loading... Back to Top