Recent trading activity has highlighted a surge in options positions for U.S. Treasury bonds, particularly the iShares 20+ Year Treasury ETF (TLT). On February 26, a large position in May 10-year calls was established, with over 100,000 contracts traded for a premium around $60 million. This move could yield profits of $40 million at a 4% yield, potentially increasing to approximately $280 million if yields return to September lows. The demand for these options reflects a broader trend as traders hedge against a potential rally in Treasuries amid economic uncertainty. Year-to-date, TLT has risen about 6%, and call options volume for TLT spiked to nearly 1.1 million contracts, three times higher than at the start of 2024. Meanwhile, the Consumer Staples sector has outperformed the Consumer Discretionary sector by 15.2% this month, a performance spread not seen since April 2022. The S&P 500 has experienced a decline driven by weakness in technology and discretionary sectors, while health care and consumer staples remain strong performers.