Bond Volatility in US to Eclipse Europe as Economy Cools
- One-month implied US volatility rises with 50bps cut in play
- Slew of data is adding to picture of slowdown in US economy
This article is for subscribers only.
Bond traders are bracing for wilder market swings in the US than in Europe amid signs the world’s largest economy is faltering.
A measure of volatility in US rate markets over the coming month rose to the highest since July 2023 on a closing basis on Wednesday. The move came after data showed job openings fell to the lowest level since 2021, reinforcing concerns over the health of the economy, while bolstering the case for aggressive easing by the Federal Reserve.