Bond Volatility Is Collapsing as US Shutdown Creates Data Void

Expected volatility in the Treasuries market has sunk to the lowest in almost four years as the US government shutdown delays key economic data releases and deprives traders of catalysts for large price swings.

The ICE BofA MOVE Index, a closely watched measure of implied fluctuations in the US bond market over the next month, tumbled to the lowest since December 2021 on Friday, two days after the first government closure since 2018 kicked in.