Traders are turning to options on fixed-income ETFs at a record pace as 10-year and 30-year Treasury yields reach their highest levels in two decades. Activity in BlackRock Inc.'s iShares 20+ Year Treasury Bond ETF, or TLT, has surged, with its 20-day average volume at an all-time high and open interest more than doubling over the past year. The number of outstanding contracts is approaching the record 13.55 million reached before monthly expiration last week. Rising yields have also increased market volatility, pushing implied volatility and the premium on bearish TLT puts to their highest levels since late March. Trading has expanded to investment-grade and high-yield bond ETFs, including LQD and HYG, while Moomoo clients bought options positioned for further TLT declines. Market participants say ETFs allow investors, including equities-focused managers, to hedge interest-rate exposure more efficiently than trading directly in the bond market.