Wall Street Live

Traders Bet on Bond Selloff, Eye 4.5% Yield Spike

By Max Weldon

4/3, 14:37 EDT
  • Traders are positioning for a potential bond market selloff post Friday's jobs report, with a focus on short-term wagers through 'weekly options' targeting risk events.
  • Notable trades include bets on a rise in 5-year note yields to 4.5% and 10-year Treasury yields to almost 4.5%, indicating expectations for a 15bp increase from current levels.
  • With yields on the rise across the 5- to 30-year spectrum, traders are bracing for increased volatility and potential yield spikes by the end of the week.