can i say it in general that to hedge short-end of yield curve, use interest rate options; to hedge long-end of yield curve, use bond options?
I dunno, you can trade ED futures and options a long way out. Probably depends on what you are trying to hedge. And of course there is the whole world of swaps and swaptions…
i was tring to find out reasons people opt for one instument against another for their hedging purpose (or for downside protection). i think for someone with short-term liability (< 2 years), he could buy a interest rate put as a hedge on declining rate. the hedge should work fine. for someone with long-term liability (> 10 years), interest rate put may not have the kind of protection investor needs especially when the long-end decline does not translate into similar short-end changes in case of flattening. however, buying a call option of treasury with similar maturity in this case would work. that’s why i was thinking if i can generalize the different usage of two similar instruments.