Bond Traders Net Millions on Bearish Option Bets After Trump Win

Bond Traders Net Millions on Bearish Option Bets After Trump Win

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In the market for Treasury alternatives, speculators appear to be cashing in on bets put a coupleof weeks ago that would advantage from a dive in yields, and are mostlikely netting millions of dollars in earnings.

As Treasury yields rose to multi-month highs Wednesday in the wake of Donald Trump’s re-election to the presidency, anumberof big block sales were seen in UnitedStates bond alternatives, in both 10-year notes and the long-bond agreement. The verysame choice strikes were purchased on Oct. 11 at lower rates, recommending Wednesday’s sales were a relocation to relax the positions gotin last month, rather than a brand-new stake.

The October bets were part of so-called Trump trades expecting that a triumph by the Republican previous president would usher in steeper tariffs and financial stimulus, stimulating quicker financial development and inflation and a wave of extra Treasury issuance. The wagers likewise incorporated bets that the dollar and UnitedStates stocks would get, which likewise came to fruitio

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