Reported 9 months ago
As the U.S. presidential election approaches, traders in interest rate options are positioning themselves for elevated rates, anticipating a potential Republican sweep. This expectation is driving the options market towards significant post-election volatility in U.S. Treasury yields, with heightened interest in long-dated payer swaptions as investors brace for higher rates. Conversely, a Democratic win may lead to lower interest rates fueled by disinflationary pressures and aggressive Federal Reserve easing.
Source: YAHOO