Bonds
Traders Look for $10 Million Payout in Bet on 5% US Yield
- Wager was placed on options tied to US 10-year futures
- A similar bet was placed last week ahead of hot US inflation
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Options traders are piling into bets the 10-year Treasury yield will jump to 5% — a level last seen in 2023 — within the next five weeks.
The latest wager will pay as much as $10 million, almost 10 times the premium paid, if the yield climbs around half a percentage point before the options expire. A similar wager, but expiring in a week, was placed before Wednesday’s data showed US inflation ran hot in January.