Traders are buying a large number of US Treasury bond options, betting that there will be a wave of rising bond prices in the next few weeks, pulling the 10-year Treasury yield back to 4%. This is also a level that has not been reached since the end of November. Data on open positions released by CME on Monday confirmed that in the past week, investors bought a large number of 10-year US Treasury bonds in March option contracts. The total premium paid to date for this position is unusually large, around $80 million; open options contracts soared to 171,153 lots, surging 300% in one week. Despite higher US yields in recent weeks, this bullish bet continues to grow. Earlier this month, the 10-year treasury yield was close to a high of 4.20%, then continued to fluctuate, around 4.16% on Monday. On the one hand, investors evaluate the latest economic data, and on the other hand, sort out the statements made by Federal Reserve officials to find clues about the extent and timing of further interest rate cuts.

Traders are buying a large number of US Treasury bond options, betting that there will be a wave of rising bond prices in the next few weeks, pulling the 10-year Treasury yield back to 4%. This is also a level that has not been reached since the end of November. Data on open positions released by CME on Monday confirmed that in the past week, investors bought a large number of 10-year US Treasury bonds in March option contracts. The total premium paid to date for this position is unusually large, around $80 million; open options contracts soared to 171,153 lots, surging 300% in one week. Despite higher US yields in recent weeks, this bullish bet continues to grow. Earlier this month, the 10-year treasury yield was close to a high of 4.20%, then continued to fluctuate, around 4.16% on Monday. On the one hand, investors evaluate the latest economic data, and on the other hand, sort out the statements made by Federal Reserve officials to find clues about the extent and timing of further interest rate cuts.