Traders Boost Options Bets That 10-Year Treasury Yield Will Top 5.3% by Month-End

Deep News10-21

Traders are increasing their options positions, wagering that the U.S. 10-year Treasury yield will rise at least 20 basis points from its current level of about 5.11% by the end of the month.

According to two London-based traders, the market bought 12,000 lots of put options on the TY Wk5 contract with a strike price of 104.0, paying a premium of 5 ticks.

Since the start of this week, cumulative purchases of this option have exceeded 100,000 contracts.

The option expires on October 30, and before expiry it will cover key data releases including the Federal Reserve's interest rate decision, September core PCE, and third-quarter GDP.

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