The Tidal Trust II YieldMax Ultra Option Income Strategy ETF (ULTY) is experiencing downward pressure due to rising concerns in the bond market. Investors are increasingly betting on the U.S. 10-year Treasury yield reaching 5%, driven by expectations that the incoming Trump administration's policies will exacerbate the fiscal deficit and spur inflation. This sentiment is reflected in the futures options market, where a higher put-to-call ratio indicates bearish sentiment on 10-year Treasury note futures. The anticipation of higher interest rates is causing anxiety among market participants, as it could lead to increased borrowing costs and negatively impact U.S. stocks, similar to the scenario in October 2023 when the 10-year yield hit 5.02%.
The current price of the ULTY ETF is $8.37, marking a 1.70% decrease from the previous close.