Bonds
Traders Set Up for Post-CPI Pop, Targeting US 10-Year Yield at 4.3%
- Benchmark yield is already trading at lowest in five weeks
- Risk builds in June options that would benefit from a rally
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Traders in US Treasury options are positioning for a bond rally in the aftermath of crucial inflation data on Wednesday.
The benchmark 10-year note advanced ahead of the report, sending the yield down two basis points to 4.42%, the lowest since the previous inflation release five weeks ago. European bonds posted even stronger gains, with benchmark German and UK rates both falling as much as seven basis points.