Treasuries Volatility Falls as Bonds Becalmed After Fed Increase
- Bank of America MOVE index drops to lowest level this year
- Fed likely on hold next two meetings, futures indicate
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Treasuries volatility fell to the lowest this year as the Federal Reserve’s decision to raise interest rates for the first time since 2006 removed uncertainty from fixed-income markets.
Bank of America Corp.’s MOVE Index, which measures price swings in U.S. government debt, slid to 67.67 basis points Thursday, the least since December 2014. The Fed raised its benchmark by a quarter point Wednesday and reiterated the view that further adjustments will be gradual.