Svmuu News: This month’s sharp rise in oil prices and the market’s downward revision of expectations for Federal Reserve’s monetary easing have resulted in a $10 million profit from an options trade on short-term interest rates. The bet, placed in January in the form of options linked to the secured overnight financing rate, is closely tied to the policy direction of Federal Reserve.Open interest data released Monday by the Chicago Mercantile Exchange Group, covering Friday’s trading, indicated that selling of the option over the weekend was consistent with profit-taking on that position.This bet, which was in place well before the outbreak of war in the Middle East, indicated that the Federal Reserve (Federal Reserve) would set interest rates higher by mid-2028 than was widely expected in January.The bet turned profitable last week as the conflict drove crude oil prices to their highest levels since 2022, sparking inflation concerns and prompting traders to anticipate that the Federal Reserve (Federal Reserve) would maintain higher interest rates for a longer period. (Jin Shi)