Traders turn to options in wake of bond market turmoil

In the wake of the dramatic sell-off in the bond market traders have turned to buying put options in an attempt to hedge against rising yields.

US Treasury bonds yields on 10-year paper set a five-year high of 5.295% on 5 June, after breaking through the 5% barrier just days earlier. In the wake of this, Chicago Board of Trade (CBoT) recorded a new record in options contracts on 7 June, the same day that the exchange recorded a new volume record in its...