Bond traders are leaning toward higher Treasury yields over the next few weeks, positioning for the 10-year rate to exceed 5% and potentially reach much loftier levels. In rates options over the past week, traders bought a number of bearish hedges for new risk as the Treasury market extended its selloff. On Wednesday, the 10-year yield climbed to 4.85%, a level last seen in 2007, extending gains in the previous session after stronger-than-anticipated US labor-market data reinforced expectations that the Federal Reserve will keep interest rates higher for longer. Most of the options action has been in November and ... (full story)