874 days ago
#Bond #impliedvolatility is moving up again on #inflation worries and #liquidity worries
Trading conditions in Treasuries are the worst since March 2020. Bond traders around the world are trying to force central banks to respond to elevated inflation rates, creating unusually high price swings. This instability gave way to a vicious circle where the reluctance to participate impairs liquidity, making price swings ever more likely. Source: Bloomberg


