Treasury Market Roiled by Sharp Swings as Investors Opt to Sit Out Rate Trading Risks

Odaily News: A gauge of U.S. Treasury volatility is on track for its biggest gain in more than a year, after bond yields climbed to multi-decade highs and jolted the market out of its recent doldrums. The ICE BofA MOVE index, a measure of bond-market volatility, has risen about 29.69% this week, the largest increase since last April's so-called "Liberation Day," when Trump's sweeping import tariffs rattled global markets. The index has now climbed to its highest level since March of this year, when the war with Iran had just broken out.

With markets swinging violently, many traders have chosen to stay on the sidelines. Adam Kurpiel, head of rates strategy at Societe Generale, said for example that his team currently holds a neutral view on U.S. rates and is waiting "for volatility to come down before trading."