UPDATE 1-German bond future trading interrupted for first time since 2023, Eurex says

Updates with more detail

By Yoruk Bahceli

LONDON, March 24 (Reuters) - Trading in two-year German government bond futures was interrupted on Monday for the first time since 2023, Deutsche Boerse's derivatives arm Eurex told Reuters, as markets swung sharply after U.S. President Donald Trump postponed military strikes against Iranian power plants and energy infrastructure.

Two so-called volatility interruptions took place at 11:05:42 GMT and 11:17:04 GMT, the spokesperson said on Tuesday, as a selloff in government bonds reversed sharply after the news.

The volatility interruption, which is different than a trading halt, is a safeguarding tool and triggered automatically by Eurex's trading system, the spokesperson said, to ensure trading runs smoothly even in extreme market conditions.

This was the first interruption on short-dated German bond futures since March 16, 2023, Eurex said.

That had taken place on a day the European Central Bank raised interest rates by 50 basis points against the backdrop of banking turmoil on both sides of the Atlantic that eventually led to the UBS's takeover of Credit Suisse.


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