Bonds Are Becoming More Volatile Than Stocks by Most on Record
- Treasuries’ haven role undermined by rate-hike uncertainty
- Implied volatility of bond ETF trades well above stock fund
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US Treasuries are supposed to be the steady part of the portfolio, insulated from the stock market’s daily drama. But by one measure, the swings in bond prices are expected to keep exceeding those for equities by the most in at least 18 years.
A gauge of the anticipated price swings in the world’s largest Treasury ETF exceeded those of the biggest stock fund this month by the most since at least 2005, when the data compiled by Bloomberg begin.