- Bond traders are increasing protection against another rise in long-term yields as concerns about persistent inflation weigh on the rates market.
- The one-month 25-delta skew, which measures the premium on puts versus calls, reached its highest level in roughly five months.
- Thirty-year Treasury yields recently climbed to their highest level since 2007 following the Federal Reserve policy meeting.
Quotes
“Bond traders are paying the highest premiums since March to protect against a further climb in longer-dated yields, as the fallout from this week’s Federal Reserve policy meeting continues to ripple through the rates market.”