Traders Pile Into Fixed-Income ETF Options Amid Two-Decade High Treasury Yields

Traders are purchasing options on fixed-income ETFs at record rates as 10-year and 30-year Treasury yields reach their highest levels in two decades.

Average 20-day options trading volume on BlackRock's iShares 20 Year Treasury Bond ETF (TLT) hit a record high, while open interest closed in on 13.55 million contracts.

Rising bond yields and increased volatility drove up bearish put premiums and prompted traditional equity investors to trade rate derivatives for hedging.