Traders Bet on U.S. Treasury Yield Increase

According to BlockBeats, traders are significantly purchasing Treasury options, anticipating that the U.S. 10-year Treasury yield will rise to 4% in the coming weeks, a level not seen since late November last year. This bullish sentiment emerges as Treasury yields have recently experienced a slight increase, with the 10-year yield reaching a peak of around 4.20% earlier this month before fluctuating to 4.16% on Monday. Investors are evaluating the latest economic data and seeking clues from Federal Reserve officials' statements regarding the timing and extent of future interest rate cuts. Data released on Monday by the Chicago Mercantile Exchange (CME) showed a substantial increase in open interest for a March-expiring 10-year Treasury option contract over the past week. The total premium paid for this position is notably large, approximately $80 million, with the open interest soaring to 171,153 contracts, marking a 300% surge within a week.