US Rate Options Traders Dump Hike Bets After 2 Soft Inflation Reports
Updated
Updated · Bloomberg · Jul 16
US Rate Options Traders Dump Hike Bets After 2 Soft Inflation Reports
3 articles · Updated · Bloomberg · Jul 16
Summary
Two benign inflation reports flipped the US bond market more bullish, pushing interest-rate options traders to unwind positions built for at least one Federal Reserve rate hike this year.
SOFR options trading has been dominated by put selling, a sign traders are backing away from wagers that the Fed’s policy rate will move higher.
Oil prices and European bond yields still pressured Treasuries this week, but that setback has not reversed the broader retreat from rate-hike positioning.