Selling caused low risk sentiment, and traders are preparing for the 10-year US Treasury yield approaching 5%.

Due to concerns about the expanding debt and deficit of the US government, traders are betting that long-term bond yields will soar, while President Trump's tax cuts are making the situation even more precarious. The dismal economic outlook has spurred hedging activity in US Treasury options, with investors aiming to increase long-term bond yields by the end of the year. The latest round of betting is in line with Wall Street sentiment, with strategists from Goldman Sachs to J.P. Morgan all raising their yield forecasts.