Traders Bet on Treasury Volatility Return as 30-Year Yields Retreat From 19-Year High
Updated
Updated · Bloomberg · May 27
Traders Bet on Treasury Volatility Return as 30-Year Yields Retreat From 19-Year High
3 articles · Updated · Bloomberg · May 27
Options traders are positioning for a renewed bout of US bond-market swings even as Treasury trading has calmed after the Iran war shock.
A key gauge of expected Treasury volatility is hovering near its lowest level of 2026, down sharply from a March peak triggered by an inflation scare and oil-price spike.
That easing has tracked a pullback in long-dated yields, with 30-year Treasuries retreating from a 19-year high as optimism grows for a US-Iran peace deal.
The bets suggest some investors see the current calm as fragile, with geopolitical and inflation risks still capable of jolting the bond market again.
With US strikes ongoing despite peace talks, is the market's calm just the prelude to a much larger storm?
Can a deal to reopen a vital oil route truly secure peace if Iran's nuclear ambitions remain unaddressed?