(Bloomberg) — Treasuries traders wrapped up a tumultuous week in which a gauge of bond-market volatility soared to a new high for the year, suggesting more upheaval to come.
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In a furious five days of trading, yields first jumped, sending the 10-year yield above 4.2% for the first time since July. The moves came despite few new catalysts, as investors continued to reassess their outlook for interest-rate cuts from the Federal Reserve and for the US election.
The severity of this week’s back and forth suggests even greater volatility in coming days, when the US bond market must weather a myriad of events — from key jobs data, to the US election, to a meeting by the Fed. The ICE BofA Move Index, which tracks expected swings in Treasuries in the coming month, climbed to the highest level this year on Tuesday.
“We are in a new regime of elevated volatility; for the past decade, it’s not like that,” said…
