Traders are scrambling to shield their portfolios against further losses in Treasuries, as worries over the budget deficit and inflation push yields toward multiyear highs. Investors have shelled out millions of dollars over recent sessions on Treasury options that would benefit if yields continued climbing.

Standouts include a Monday trade on the Bloomberg Terminal that took a $6.5 million position targeting the 30-year yield rising to as high as 5.7% by the end of November. The yield on the long bond stood at around 5.25% on Tuesday, less than 10 basis points off a 19-year peak reached last month.

The report was published on September 1, 2026, with coverage by Edward Bolingbroke and Greg Ritchie. Defensive positioning highlights growing anxiety over US fiscal conditions and the path of interest rates.