The options market for US Treasuries was abuzz Thursday following the emergence of a large bearish wager that Friday’s jobs report will trigger the biggest backup in benchmark yields in more than nine months.
The trade targets a surge in US 10-year yields to as high as 4.15% by Friday’s close of business, or a jump of about 0.15 percentage point from Thursday afternoon’s levels. That would mark the biggest one-day rise in 10-year yields since late March and a further retrenchment for Treasuries, which have had a rocky start to the year after ending 2023 on a winning note following a furious two-month rally.
