Inflation
A lack of consensus is generally good for markets - and there is certainly no agreement on the direction of inflation at the moment. With fears of a double-dip recession dominating for much of this year, dealers say they saw strong demand for inflation floors from pension funds and other asset managers, keen to protect themselves against a worst-case scenario of deflation.
This fear led to the biggest options trade of 2010, with Toronto-based insurer Fairfax Financial purchasing zero-coupon 0%
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