German Bunds

There are two methods to track German bunds. Eurex links spot and futures markets through electronic trading of bunds and iBoxx indices. iBoxx indices comprise two benchmarks for the euro and British pound bond markets, iBoxx and iBoxx consolidated. Both were the first indices developed to track the European bond market. iBoxx trades gilts and bunds while iBoxx consolidated determines spreads to measure yield curves. Yield-curves data are based on actual and updated market bid/ask spreads.

The benchmark German bund is the 10-year, and is employed as a comparison to other nations’ yield curves to determine direction for the euro and other financial instruments. Yet it's not an imperative for the 10-year to be employed for trading ...

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