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4 trades to play the rocky markets

After a day in which U.S. stocks lost ground and the Treasury market went haywire, CNBC "Fast Money" traders looked for ways to capitalize on continued uncertainty.

A selloff sent long-term Treasury yields to eight-month highs in early trading Thursday before yields fell in tandem with the German Bund. Amid big moves in bonds, and ahead of Friday's non-farm payrolls data, trader Tim Seymour looked for a way to hedge.

Traders work on the floor of the New York Stock Exchange.
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Traders work on the floor of the New York Stock Exchange.

He chose the iShares Russell 2000 ETF as an "outright" safety play. The fund, which has a broad exposure to small-cap companies, has climbed 4 percent this year.

Read MoreHair-raising bond rout leads to capitulation

Trader Brian Kelly liked a short to play potential havoc in the market. Amid low liquidity and rising rates, corporate debt default could increase, he said.

He would short the iShares iBoxx $ High Yield Corporate Bond ETF.

Read MoreHow experts are playing this market

Kelly also said a combination of shorting the Japanese yen and taking a stake in Japanese stocks looks appealing. He would play Japan through the ProShares UltraShort Yen and the WisdomTree Japan Hedged Equity Fund.

Disclosures:

Tim Seymour

Tim Seymour is long AAPL, T, BAC, C, DIS, F, FXI, GE, GM, GOOGL, INTC, KORS and SUNE. Tim's firm is long BABA, BIDU, MCD, NKE, NOK, SBUX and YHOO.

Jon Najarian

Long AEP, BBY, CS, CSLT, GE, HOG, HSBC, HZNP, KORS, MCD, MW, NEE, NRG, PG, RHT, SIMO, SYK, TTWO, TLT, VIX, XLI and YPF. He is long calls AIG, ANF, ARG, ARIA, CA, CBS, CTXS, DE, DRI, EBAY, ETFC, GE, GLD, IDTI, JNPR, KING, KO, LLY, MCD, MU, NUAN, PG, PHM, SFUN, SNDK and SUNE. He is long puts KORS and LC. Today he bought ARG calls, MU calls, CA calls, ETFC calls and LC puts.

Dan Nathan

Dan is long LNKD July call fly, LVS July Aug put spread, GOOGL June/July call spread, TWTR, BBRY June calls, SO, DE June put fly, INTC July put and SPY June put fly. He is short SO Aug calls. Today he sold to close TLT June call butterfly and GOOGL June call fly.

Brian Kelly

Brian Kelly is long DXGE, BTC=, BBRY and U.S. dollar. He is short Australian dollar, Canadian dollar, yen and yuan.