Treasury Call Option Premium Over Puts Rises to ~50 Basis Points, the Highest Since March 2025

Investors are betting on more upside in U.S. Treasuries. The extra cost investors are willing to pay for call options on longer-dated Treasuries relative to puts is up to about 50 basis points, the highest since March 2025.
This marks a sharp reversal from a 250-basis-point premium for puts over calls in late September, suggesting investors are increasingly betting on further gains in Treasury prices.
One options trade is targeting a drop in the 10-year Treasury yield to about 4.60% within a month, involving about 65,000 contracts and costing about $7 million in premium.
This comes as the 10-year yield has declined below 5.00% for the first time since September 23, now down 40 basis points from its October 7 peak.
The bond market is seeing massive swings in price and sentiment.