Perceptions of risk are diverging in perplexing ways among asset classes.
Volatility in bonds is whipping up just as it trails off in stocks. The ICE BofA MOVE Index, a gauge of costs for Treasury options, rose in four of the last five weeks. A similar measure for equities, the Cboe Volatility Index, or VIX, fell for three straight weeks. The MOVE’s premium over the VIX has widened this month to the most since 2009.