Bond Volatility Fades as Central Bankers Push Back on Inflation
- Fed’s Jackson Hole symposium is among next key risk events
- ECB seeks to cool speculation of any shift at June meeting
Photographer: Angela Weiss/AFP/Getty Images
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Interest rate volatility has been sliding as the world’s largest central banks look to damp speculation that inflation will translate into any slowdown in their bond-buying programs.
U.S. three-month 10-year implied swaption volatility -- a closely watched gauge of how much prices may move over the period -- has been steadily declining, and hit the lowest levels since early March, as officials repeat the line that inflation will be transitory.