Traders Are Betting that Volatility Is About to Spread
Will equity volatility catch up with the move in bonds?
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A measure of volatility for longer-term U.S. Treasuries recently hit its highest level since July 2015 as traders begin to price how President-elect Donald Trump's potential fiscal policies could prove game-changing for inflation and growth.
The 10-year U.S. Treasury yield has jumped nearly 70 basis points to 2.42 percent since Americans' votes were being tallied on election night, fueled by rising market-based measures of inflation expectations and uncertainty surrounding the new administration.