Traders are heavily betting that the 10-year US Treasury yield will return to 4% within weeks.

Odaily News Traders are heavily buying Treasury options, betting that the yield on the 10-year U.S. Treasury will rise to 4% in the coming weeks— a level not reached since late November last year. This bullish bet comes as U.S. Treasury yields have recently ticked up slightly, with the 10-year yield hitting a high of around 4.20% earlier this month, before fluctuating to 4.16% on Monday as investors weigh the latest economic data and look for clues on the future magnitude and timing of rate cuts from Fed officials. Data from the Chicago Mercantile Exchange (CME) shows that there has been significant buying of 10-year Treasury options contracts expiring in March over the past week. The total premiums paid for this position have been unusually large, reaching around $80 million, and the number of open contracts has surged to 171,153, a 300% increase within a week. (Jin10)