US bonds were sold off on Wednesday. Options traders increased their long positions in the US dollar, and the pound became the preferred target for betting on the strengthening of the US dollar. Dollar buying was strong in the options market throughout Wednesday. The yield on US 10-year Treasury bonds climbed from 4.99% to 5.13%, and demand for the dollar increased accordingly. According to data from the Depository Trust and Clearing Company, the British pound was affected by the current round of capital shocks, and nearly three-quarters of the nominal principal of ordinary options are betting that the pound weakens against the US dollar. The weekly risk reversal index for the US dollar spot index was extended to 40 basis points. The premium for call options was higher than for short options, which is the strongest sign that the dollar is bullish since late April; the January risk reversal index hit the strongest bullish level for the US dollar since July.

US bonds were sold off on Wednesday. Options traders increased their long positions in the US dollar, and the pound became the preferred target for betting on the strengthening of the US dollar. Dollar buying was strong in the options market throughout Wednesday. The yield on US 10-year Treasury bonds climbed from 4.99% to 5.13%, and demand for the dollar increased accordingly. According to data from the Depository Trust and Clearing Company, the British pound was affected by the current round of capital shocks, and nearly three-quarters of the nominal principal of ordinary options are betting that the pound weakens against the US dollar. The weekly risk reversal index for the US dollar spot index was extended to 40 basis points. The premium for call options was higher than for short options, which is the strongest sign that the dollar is bullish since late April; the January risk reversal index hit the strongest bullish level for the US dollar since July.