[Large Options Trade Emerges in U.S. Treasury Market, Betting on 10-Year Yield Surpassing 5%] Odaily Planet Daily News – A large options trade surfaced in the U.S. Treasury market today, betting that the selling momentum in U.S. Treasuries will push the 10-year yield above 5%. Rising oil prices could further fuel already elevated inflation, and this options trade is the latest sign of investors stepping up hedging against risks in the bond market. The sell-off has driven the 10-year yield close to its 2023 peak, slightly above 5%. The 30-year U.S. Treasury yield rose to 5.35% on Thursday, the highest level since 2007. The premium paid for this options trade was approximately $14 million, a significant amount in the derivatives market. Previously, traders noted a wave of behind-the-scenes hedging activity in the market, adding fuel to the sell-off. If the downward trend continues, investors may further purchase bearish options to protect their portfolios from losses, while also potentially increasing so-called convexity hedging. If the 10-year U.S. Treasury yield rises to around 5.1%, this trade will break even; if the yield climbs to 5.2%, the profit will increase to approximately $15 million. The last time the 10-year yield reached this level was in 2007.