On Friday, traders in the U.S. Treasury market flooded the options arena as 10‑year and 30‑year yields climbed to their highest levels in more than a year. The iShares 20+ Year Treasury Bond ETF (TLT), which tracks long‑term U.S. debt, saw a trading volume that tripled the average of the previous month, driven largely by a wave of put options that bet on falling prices and higher yields.

In total, 1.4 million options contracts were exchanged, with nearly 380,000 of them being puts bought at or above the ask price. Calls lagged behind, with fewer than 240,000 contracts purchased. The heavy put buying reflects a consensus that rising yields will push the ETF’s value lower.

Among the largest positions executed, one trader placed a $2 million bet on a steep decline by purchasing 15,000 June 75‑strike puts, expecting TLT to fall more than 11% by June 17. A successful trade would push the fund into territory not seen since its launch in 2002.

Another high‑profile play involved a straddle strategy: the trader bought 3,000 84‑strike puts and 3,000 84‑strike calls for January 18, 2028, totaling a $3 million exposure. This position would profit if TLT moved beyond $74 or rose above $94.

These sizable options flows underscore the mounting tension in global bond markets, which has been fueled by a sharp rise in consumer‑price inflation last week, crude‑oil prices breaking the $100 mark, and the conclusion of Jerome Powell’s tenure as Federal Reserve chair.