Eerie Calm in Treasuries at the Mercy of Jobs and Virus Data
- ICE BoA MOVE volatility index has declined near a historic low
- 10-year yield has had half-percentage-point range since August
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An eerie calm has enveloped the Treasury market, and although the worsening pandemic and updates on the U.S. economy could stir things up a bit in the days and weeks ahead, few traders expect a quick end to the boredom.
Even as global stocks head for the best month on record, the U.S. bond market’s pulse has slowed significantly in recent months. The ICE BofA MOVE Index, which measures expected price swings in the Treasury market, spiked in the lead-up to the U.S. election but has since almost dwindled back to the record low reached at the end of September.