Mystery Trader Bets $14 Million on US Treasury Sell-off, Targeting 5% Yield

A large, mysterious options trade worth approximately $14 million has been placed, betting that a sell-off in US Treasuries will push the 10-year yield above 5%. This move reflects growing investor efforts to hedge against bond market risks, as rising oil prices threaten to exacerbate inflation. The 30-year Treasury yield recently hit its highest level since 2007 at 5.35%. Traders suggest that ongoing hedging activities are contributing to the downward pressure on bond prices, with further purchases of bearish options expected if the trend continues.