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Volatility Plumbs Record Lows as Stock, Bond Rallies Accelerate

  • MOVE gauge of Treasury volatility hits lowest since ’88 start
  • VIX closes below 10 for fifth day, S&P 500 at all-time high

Record highs for stocks are being met with record complacency across a range of assets.

Stocks have resumed their rallies after central bank hawkishness last month spurred a brief interruption, with the MSCI All-World Country Index and the S&P 500 Index both reaching all-time highs Wednesday. Meanwhile, the VIX Index of stock volatility is staying low for its longest stretch on record and bond-market fear gauges have crashed through their previous nadirs. Currencies are the only market left with a frisson of apprehension as the Japanese and European central banks prepare to hand down decisions Thursday.