Bearish Treasury Bets Hit a Record Amid Inflation Concern
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Options traders are paying record prices to protect against swings in long-term U.S. Treasuries relative to stocks amid concern inflation will accelerate.
Implied volatility, the key gauge of options prices, for contracts with an exercise level closest to the iShares Barclays 20+ Year Treasury Bond Fund has climbed to 16.65, compared with 13.85 for the SPDR S&P 500 ETF Trust, according to three-month data compiled by Bloomberg. The ratio between the two ETFs reached 1.24 on Sept. 14, the highest since at least 2005.