Bond Traders Boost Bets on 10-Year Rally as Shutdown Begins

Bond traders are pumping millions of dollars into options wagers that 10-year Treasuries are on the cusp of a rally that will drive yields to five-month lows.

Traders ramped up the bullish positioning on Tuesday, the day before a US government shutdown that risks weighing on the economy, and which may cement expectations that the Federal Reserve will cut interest rates again at the end of October.