Mysterious funds are aggressively buying U.S. Treasury put options, betting that long-term bonds will break below historic lows next month.
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The U.S. Treasury bond market is accumulating a rare directional bet. Last Friday, as yields on 10-year and 30-year Treasury bonds surged, options trading linked to Treasuries saw unusually high volume, with large amounts of money flowing into put options, betting that long-term rates will continue to climb.
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