Traders Bet Big on Bond Rally as Tariff Growth Shock Looms
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 25 2025
0mins
Source: Bloomberg
Market Reactions to Economic Slowdown: Bond traders are hedging against a potential economic slowdown, leading to a surge in Treasury prices and a drop in yields, with significant bets placed on further declines in 10-year yields due to concerns over President Trump's tariffs impacting the global economy.
Increased Bullish Positions: Traders are increasingly optimistic, as evidenced by rising long positions in Treasury futures and options, with expectations of possible interest rate cuts from the Federal Reserve, reflected in a notable increase in open interest for certain contracts.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
