Bond traders brace for another US sell-off

There was strong demand for contracts wagering that 10-year yields will breach 4.5%, a level they haven’t exceeded since November. — Bloomberg

NEW YORK: Bond traders are bracing for the risk of a renewed sell-off, driving a surge of trading in options targeting higher yields and prompting investors to unwind long Treasury positions by the most in nearly two years.

The trend gained momentum this week, when there was strong demand for contracts wagering that 10-year yields will breach 4.5%, a level they haven’t exceeded since November.