Skip to content
Subscriber Only

Treasury Volatility Is Just Starting With Big Swings on the Way

  • Stimulus vote, reflation trade and supply among key drivers
  • Volatility on 10-year swap rates jumped by most since March
Updated on

U.S. Treasuries are in for more wild gyrations, with volatility markets signaling that the benchmark bond yield could surge or drop by almost 30 basis points in the next three months.

The three-month implied volatility on 10-year swap rates -- a measure of how much bonds are expected to move -- jumped by the most since March on Tuesday, surpassing the levels heading into the 2020 U.S. election.