Bond Yields Pull Back After A Weak Jobs Report. Options Traders Had Already Started Positioning For Relief.
U.S. Treasury yields fell to 5.18% after a weak jobs report, signaling trader positioning for relief. Options activity in XLU surged, with a $1M position favoring stabilization. Utilities are sensitive to interest rates. SOFR futures saw large call-spread buying, benefiting from lower short-term rates. TLT, an ETF holding long-term Treasuries, faced pressure from rising yields.
