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Showing posts with label Volatility. Show all posts
Showing posts with label Volatility. Show all posts

Wednesday, April 12, 2017

Low Bond Volatility Not Surprising

Chart: 10-year Treasury Historical Volatility

The low levels of implied volatility in the bond market has attracted a fair amount of commentary. Although it seems reasonable to believe that volatility selling strategies have reduced market volatility, there's no fundamental reason to expect a big reversal (outside of another crisis).