Economy
Cost Of Options Hedges Against Treasuries Rally Surges To Highest Since March
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THE BRIEF
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The cost of options hedges against further gains in US Treasuries surged to its highest level since March on Thursday as investors sought government bonds for safety.
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Yields on the benchmark 10-year Treasury dropped below 5% for the first time in about a month, with traders paying a higher premium for call options over put options.
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The market moves were driven by spiking oil prices amid Middle East conflict worries, artificial intelligence trade jitters, and escalating French bond stress.