For now, volatility in the Treasuries market is near the lowest level since December 2014. But that could soon change. The Bank of America Merrill Lynch MOVE Index, which measures price swings in U.S. rates, could be stirred in coming months as the race to the White House heats up, exposing investors to the tail risk of policy uncertainty. The subdued levels are reminiscent of sterling rates volatility, which have picked up closer to Britain’s vote on EU membership after staying relatively low in earlier months.
--With assistance from Tanvir Sandhu To contact the reporter on this story: V. Ramakrishnan in London at rvenkatarama@bloomberg.net. To contact the editors responsible for this story: Ven Ram at vram1@bloomberg.net, Sophie Caronello, Jenny Paris
©2016 Bloomberg L.P.
