#1
#1 out of 1
business6h ago
Ominous bond trades point to much higher rates
- Large volume in TLT options pointed to traders betting on higher U.S. yields this year.
- A 15,000 June 75-put bet signals a bet on TLT dropping about 11% next month.
- A large straddle bet for 2028 reflects a bet on big moves in either direction for TLT.
- The trades follow a CPI jump and higher crude prices as market momentum builds.
- The report notes Powell’s tenure as Fed chair is ending, adding to rate expectations.
- Traders positioned around both puts and calls, indicating a balanced view on potential moves.
- The report highlights the market's reaction to rising yields and rate expectations.
- Trading activity emphasized put buying as traders bet on lower bond prices.
- The event underscores evolving expectations for long-term rate paths amid macro data.
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