Debt concerns and policy uncertainties drive market hedging frenzy, traders betting on 10-year US Treasury yield rising to 5%.

According to the Smart Financial APP, traders are betting that long-term US Treasury yields will soar due to concerns about the escalating debt and deficit of the US government, with President Donald Trump's tax cuts making the situation even more precarious. The dim economic outlook has fueled hedging activities in US Treasury options, as investors try to increase long-term bond yields before the end of the year. The latest round of bets on lower yields is in line with sentiment on Wall Street, as strategists at major banks like Goldman Sachs and JPMorgan Chase have raised their yield forecasts.