The two mammoth financial markets–equities and bonds –are truly on a summer break in the U.S.
For Treasuries, evidence lies in the MOVE index, a widely used gauge of implied volatility that tracks expected swings in Treasuries. It fell to 76.7 on Friday, the lowest level since January 2022. Today, the MOVE index is slightly up to 82.15.
“Given the post-Liberation Day surge in volatility that brought the index as high as 139.9, the current calmness, both outright and by comparison, is notable,” wrote Vail Hartman and Ian Lyngen, rate strategists at BMO Capital Markets on Tuesday.
