Bond Traders Target Treasury 10-Year Yield Above 5% Within Weeks
- Open interest rises in multiple US 10-year put-option strikes
- JPMorgan client poll shows biggest short stance since August
This article is for subscribers only.
Bond traders are leaning toward higher Treasury yields over the next few weeks, positioning for the 10-year rate to exceed 5% and potentially reach much loftier levels.
In rates options over the past week, traders bought a number of bearish hedges for new risk as the Treasury market extended its selloff. On Wednesday, the 10-year yield climbed to 4.85%, a level last seen in 2007, extending gains in the previous session after stronger-than-anticipated US labor-market data reinforced expectations that the Federal Reserve will keep interest rates higher for longer.