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The purchases were part of a broad U.S. bond
market rally in the wake of record low 10-year yields across
Europe and a robust $35 billion five-year Treasuries note
auction, analysts said.
At 2:06 p.m. EST (1906 GMT), 34,856 contracts of 10-year
Treasury note futures for March 2015 delivery traded at a price
of 126-9/32 and 18,950 contracts of March 2015 30-year Treasury
bond futures transacted at 141-11/32 on the Chicago Board of
Trade, CME Group data showed.
Traders said this block trade was likely a curve-flattening move
in anticipation that long-term U.S. bond yields would fall
further due to muted inflation and sluggish domestic growth.
A minute later, Blackrock's ETF benchmarked to Barclays 20-plus
year Treasury index experienced a sudden surge in volume when
127,147 contracts traded, lifting its share price to nearly
$121.02. Shares of the ETF had traded at $120.69 five minutes
earlier, Reuters data showed.
In late U.S. trading, it traded at $121.15, up 0.8 percent on
the day.
The Dec 2014 T-note contract last traded up 11/32 at its session
high of 127-4/32.
(Reporting by Richard Leong; Editing by James Dalgleish and Alan
Crosby)
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