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Derivatives reveal bond liquidity risk

Investors pour into derivatives as bond-market volume for some maturities falls a third in the past year

[LONDON] THE boom in fixed-income derivatives trading is exposing a hidden risk in debt markets around the world: the inability of investors to buy and sell bonds. While futures trading of 10-year Treasuries is close to an all-time high, bond-market volume for some maturities has fallen a third