Lates News

Traders are buying a large number of government bond options, betting that the yield on the US 10-year Treasury bond will rise to 4% in the coming weeks - a level not seen since late November last year. This bullish bet comes at a time when US bond yields have actually edged up recently, with the 10-year yield hitting a high near 4.20% earlier this month before fluctuating to 4.16% on Monday as investors weigh the latest economic data and look for clues in the speeches of Federal Reserve officials about the extent and timing of future interest rate cuts. Data from the Chicago Mercantile Exchange (CME) released on Monday shows a large number of open contracts for 10-year US Treasury bond options that expire in March were bought in the past week. The total premium paid for these positions so far is unusually large, reaching around $80 million, and the number of open contracts has soared to 171,153 contracts, an increase of 300% in just one week.