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

A) buy interest rate futures.
B) sell S&P futures.
C) sell interest rate futures.
D) buy Treasury bonds in the spot market.
E) None of the options are correct.

Treasury Bonds

Long-term government debt securities with a fixed interest rate, considered low-risk investments.

Interest Rate Futures

Financial derivatives contracts that lock in the future delivery of an asset based on interest rates, commonly used for hedging and speculating on future interest rate movements.

Hedge

An investment made to reduce the risk of adverse price movements in an asset, often involving derivatives like options and futures.