Treasury Options Trading and Federal Reserve Policy

Treasury options traders are preparing for various scenarios, including interest rate cuts or hikes by the US Federal Reserve. Recent inflation data has led to uncertainty about the Fed's monetary policy. Currency markets are also watching the Bank of Japan. Traders are positioning for both dovish and hawkish outcomes in rates. Tactical positioning in Treasuries has been short, with open interest increasing as yields rise.

Economic Outlook and Inflation Data

Heather Boushey from the White House Council of Economic Advisers discusses the March PPI inflation data and expresses optimism about the economy and inflation trajectory.