Volatility in the U.S. Treasury market has surged, with the ICE BofA MOVE Index rising about 29.69% this week, its biggest weekly increase since April last year, according to Odaily. The move came after bond yields climbed to multi-decade highs, shaking the market out of a recent lull. The index has now reached its highest level since March this year, a period the report noted coincided with the outbreak of the Iran war. With price swings intensifying, some market participants are choosing not to add fresh rate exposure for now. Odaily cited Societe Generale rate strategy head Adam Kurpiel as saying his team is neutral on U.S. rates at present and is waiting for volatility to fall before putting on trades again. The latest jump in MOVE points to a bond market that has become notably more unstable in a short period, leaving traders more cautious about near-term interest-rate positioning.
Volatility in the U.S. Treasury market has accelerated, with the ICE BofA MOVE Index climbing about 29.69% this week, its biggest increase since April last year, according to Odaily.
The report said the jump followed bond yields rising to multi-decade highs, pulling the market out of its recent lull. The MOVE Index, a gauge of Treasury market volatility, has now reached its highest level since March this year, when the Iran war had just broken out.
Traders pull back from rate exposure
With market swings running high, many traders have moved to the sidelines. Adam Kurpiel, head of rate strategy at Societe Generale, said his team is neutral on U.S. rates for now and is waiting to trade again after volatility eases, Odaily reported.
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