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Bond Market Calm: Options Traders Bet Against Lasting Peace
28 May
Summary
- US bond market calm returns after Iran war turbulence.
- Options traders are making significant bets on market volatility.
- Key measures of expected bond swings are near yearly lows.

Following recent turbulence attributed to the Iran conflict, the US bond market has seen a return to calm. This stabilization is coinciding with notable movements in the options market. Some traders are actively placing wagers that this period of quiet will be short-lived.
An important gauge that measures expectations for swings in the bond market is currently trading near its lowest levels of the year. This contrasts sharply with its peak in March, which was spurred by geopolitical events.
The current market conditions reflect a complex sentiment, with visible calm potentially masking underlying trader anticipation of renewed volatility.