The iShares 20+ Year Treasury Bond ETF (TLT) closed at $86.76 on January 15, 2025, up 1.72% as softer-than-expected inflation data fueled expectations for Federal Reserve interest rate cuts. The Consumer Price Index (CPI) report revealed a year-over-year increase of 2.9% in December, with core CPI rising by 3.2%, slightly below forecasts. This has led to a significant drop in Treasury yields, with the 10-year yield falling by 12 basis points to 4.68%, enhancing the appeal of long-duration bonds. The bond market's rally was further supported by strong earnings from major banks, contributing to a broader market upswing. Additionally, options activity in TLT was robust, with Friday-expiry $87 calls trading over 60,000 lots, reflecting heightened investor interest.