The 10-year US Treasury yield climbed to 5.3% and the 30-year yield touched 5.4%, driving down the SPDR Gold Shares (GLD) by 4% to its lowest level since the first week of August. The iShares iBoxx High Yield Corporate Bond ETF (HYG) extended a five-day rout to its lowest since April 2025. Options traders are betting on a rebound for GLD, with call options trading at twice the volume of puts, showing a bullish sentiment of nearly $2.8 million. Conversely, traders are bearish on HYG, with put options trading at more than 2.5 times the volume of calls. Nigam Arora, founder of The Arora Report, warns that the risk of defaults in high-yield bonds is likely much higher than the market anticipates.