U.S. Treasury Options Suggest Calm After Rout, Market Maker Says
- Options pricing points to yields not exceeding 1.9% near term
- Optiver says no panic in options market despite hawkish Fed
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The bond selloff that pushed 10-year Treasury yields to their highest in two years may not lead to a full-on taper tantrum, according to one of the biggest Treasury options market makers.
Bets in the options market suggest yields won’t go far above current levels, with investors positioned for the 10-year yield to rise modestly to 1.9% in the near term, despite hawkish Federal Reserve minutes last week, said Harm Backx, a trader at Optiver Holding BV in Amsterdam. Bearish bets also lost steam after data on Friday showed a mixed picture of the U.S. jobs market.