Trader Takes Enormous Risk by Betting on Treasuries to Plummet Following Jobs Report

Trader Takes Enormous Risk by Betting on Treasuries to Plummet Following Jobs Report


(Bloomberg) — 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.

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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 points from Thursday’s closing level.⁢ 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.

The timing of the bearish bet‍ comes just ahead ‌of the December jobs report, due at 8:30 am New York time Friday, with expectations rising for a robust readout. Separate data released Thursday showed hiring by US companies ramped up in December, while first-time jobless claims fell in the ⁤latest week, the latest signs of a resilient labor…

2024-01-04 19:40:34
Source from finance.yahoo.com
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