2024-04-18 14:00:00 ET
Summary
- Recent trends indicate a resurgence in bond implied volatility on a global basis, with U.S. interest rates leading the charge.
- Currently, U.S. rates are at their highest level of the year, and have returned to current-cycle highs of last year across different maturities.
- Geopolitical developments introduce additional complexity, shifting the focus towards potential rate cuts to stimulate growth, if necessary. This could lead to a bumpy period for rate volatility in the coming months.
By Kostas Deslis
We see bond market volatility as a critical barometer of short- to medium-term economic performance, affecting multiple asset classes. ...
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Rate Volatility's Market Implications