Higher rates are wreaking havoc on these two ETFs. Traders see one bouncing back

The relentless surge in rates is breaking the back of two key macro trades that had been holding firm. Options traders are betting one will recover. Gold dropped 4% to the lowest since the first week of August, as the 10-year yield climbed to 5.3% and the 30-year yield touched 5.4%. High-yield corporate bonds extended a five-day rout to the lowest since April 2025, according to the iShares iBoxx High Yield Corporate Bond ETF (HYG) . Judging by options flows on Monday, traders think gold has the potential to bounce back. For high-yield bonds, they're betting things could get worse.