To hedge a short position in Treasury bonds, an investor would most likely

Question

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To hedge a short position in Treasury bonds, an investor would buy interest rate futures. This is because interest rate futures move inversely to interest rates, similar to bonds. Buying interest rate futures can protect against the risk of rising bond prices (falling interest rates), which would negatively affect the value of the short position in Treasury bonds.

To Hedge a Short Position in Treasury Bonds, an Investor