One reason the MOVE is subdued is that bonds face two opposing forces. Higher oil prices (Iran war) → inflation risk ↑ → yields ↑ But higher oil also → demand destruction → growth ↓ → unemployment ↑ (potentially) → yields ↓ With inflation and growth impulses offsetting each other, rates currently lack a clear direction which is keeping volatility in check.

Karel Mercx
@KarelMercx
The MOVE Index is another sign that the Iran war has had little impact on financial markets.
What the VIX is for stocks, the MOVE is for US Treasuries.
Most of the spike since the war is already gone.
Even with information spreading instantly, markets still react slowly. x.com/KarelMercx/sta…

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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