Will interest rates continue to go up?

I don’t think the recent blow-off in Treasury bonds is over. I created a bear spread on IEF  (7 to 10 year Treasuries), selling-to-open January S90 calls at 3.24 and buying S94 calls at 0.41.  The net credit was $2.83 and the worst case loss is $1.17.   The spread for this combo order was bid 2.65 and ask 3.05.   I tried credit orders at 2.90 and 2.85 before I got a fill at 2.83—which went immediately when I put it in.   Seems fairly typical that if I give the market maker a nickel more than splitting the bid/ask difference  (2.85) the order will fill.    I like combo orders rather than limit orders because I don’t have to commit to a price for a specific option, the market maker has to make that trade-off.

IEF takes a tumble, click to enlarge

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