Traders’ Cost of Hedging Against Big Treasuries Rally Is Soaring
The cost of options hedges against more gains in Treasuries surged to its highest level since March on Thursday, as investors sought the safety of US government bonds following a spike in oil prices and a deepening fiscal crisis in France.

(Bloomberg) -- The cost of options hedges against more gains in Treasuries surged to its highest level since March on Thursday, as investors sought the safety of US government bonds following a spike in oil prices and a deepening fiscal crisis in France.Yields on the benchmark 10-year Treasury fell below 5% for the first time in about a month, with traders shelling out millions to hedge against an even deeper decline.









