Traders Ramp Up Bets on a Treasury Selloff After Trump’s Win
- Treasury futures’ open interest rises as yields have climbed
- New bearish positions face inflation data test on Wednesday
The US Treasury building in Washington, DC.
Photographer: Al Drago/BloombergThis article is for subscribers only.
Treasuries held on to recent losses ahead of the US inflation report, with traders loading up on bets for further declines in anticipation that Donald Trump’s pledged policies will fan price increases and keep interest rates high.
US yields were stable across the curve after jumping about 10 basis points on Tuesday. The two-year rate was at 4.34%, near the highest since July, and gauge of Treasury returns was only 0.7% away from wiping out its year-to-date gains.