Traders increase their bets on buying put USA government bonds, as Trump's policies are expected to reignite inflation.
Traders are increasing their bets on further decline in the usa bond market, anticipating that the policies promised by Trump will reignite inflation and keep usa interest rates high. Data released on Tuesday showed that open interest in two-year note futures contracts rose for the fourth consecutive trading day. This indicates traders are building put positions after the election and before the release of October inflation data on Wednesday. As short bets expand, US bonds are being sold off, with yields rising more than 10 basis points across the board on Tuesday. An indicator of bond roi is only 1.4% away from erasing this year's gains. Citigroup strategist David Bieber reported
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On November 12th ET, $Citigroup(C.US)$ had active options trading, with a total trading volume of 201.54K options for the day, of which put options accounted for 21.96% of the total transactions,
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The US dollar rose to a two-year high, with Wall Street unanimously bullish.
A week after Donald Trump won the US presidential election, the momentum of the rising US dollar is increasing, sweeping through other currencies with unstoppable force, prompting Wall Street strategists to prepare for further increases. The Bloomberg US Dollar Index rose to its highest level since November 2022 on Tuesday, pushing the euro to its lowest level in a year, while other currencies were also under pressure. The yen and the Canadian dollar also fell, heading towards a key psychological barrier. "We believe that the strong momentum of the US dollar will continue into next year, even 2026," said Monex forex trader Helen Given, "The Trump administration has substantially altered forecast calculations, as national