MicroStrategy Options Hedge Risk of 96% Drop After Bitcoin Rout

Reuters

TREASURIES-U.S. yields ease after hitting 3-1/2 year highs on rate hike jitters

Ten-year Treasury yields fell 4.1 basis points to 3.083%, after hitting 3.203%, a level last seen in November 2018. The equities rout will keep slamming bond sentiment until investors stop taking their cue from rising yields and turn to corporate earnings as their guide, said Steven Ricchiuto, U.S. chief economist at Mizuho Securities USA LLC. “The correlation between stocks and bonds has to break down,” he said. The pause in the bond market sell-off was driven by short-covering and some bargain hunting, said Tom di Galoma, managing director at Seaport Global Holdings LLC. Investors buy back borrowed securities to cover their short positions, which often sparks volatility.