Options traders start calling bottom on bond rout after 'bullet bid' 10-year auction

Impact · against what's priced in

The shift in options sentiment toward TLT and XLU suggests a perceived bottom in the bond rout, but the impact is modest as some utility gains have already materialized. The 'bullet bid' at the 10-year auction provides a concrete catalyst for a recovery in rate-sensitive assets.

TLT+0.40: No priced-in read yet
In context: High call volume (370,000 vs 100,000 puts) and a 'bullet bid' at the 10-year auction indicate a sentiment shift toward a recovery of the 6% drop seen since September 22.
Read from the article alone

Options traders start calling bottom on bond rout after 'bullet bid' 10-year auction

XLU▲500%
rates▲13%
TLT
bond auction
bond market
options trading
treasuries
utilities

Options traders start calling bottom on bond rout after 'bullet bid' 10-year auction

What matters in this story

Inflation Expectations Just Jumped to a Three-Year High as Americans Now Expect 3.9% Inflation

Options traders start calling bottom on bond rout after 'bullet bid' 10-year auction

What matters in this story

Inflation Expectations Just Jumped to a Three-Year High as Americans Now Expect 3.9% Inflation

How each ticker is affected

Track these names every morning.

10-year Treasury yield is little changed as Fed's Waller says more hikes needed, investors await 30-year auction

The Bond Market Wants Lower Fed Target Rates And Inflation To Release Via Non-Core, In My View

Xcel Energy to Sell Michigan Asset to Sharpen Its Growth Strategy

Alphabet's $1.8 Billion Black Hills Deal Powers AI Data Center Push

Options traders start calling bottom on bond rout after 'bullet bid' 10-year auction

What matters in this story

Next reads from the same story arc

Inflation Expectations Just Jumped to a Three-Year High as Americans Now Expect 3.9% Inflation

Options traders start calling bottom on bond rout after 'bullet bid' 10-year auction

What matters in this story

Next reads from the same story arc

Inflation Expectations Just Jumped to a Three-Year High as Americans Now Expect 3.9% Inflation

How each ticker is affected

Track these names every morning.

10-year Treasury yield is little changed as Fed's Waller says more hikes needed, investors await 30-year auction

The Bond Market Wants Lower Fed Target Rates And Inflation To Release Via Non-Core, In My View

Xcel Energy to Sell Michigan Asset to Sharpen Its Growth Strategy

Alphabet's $1.8 Billion Black Hills Deal Powers AI Data Center Push