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Bond-market volatility surges to highest since 2016

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Bond-market volatility surges to highest since 2016

U.S. government bonds have rallied this year amid expectations that the Federal Reserve will cut interest rates at least one time in 2019 to help quellworries around a U.S.-China trade war, which already have dealt a blow to confidence among multinational business executives and softened the global economy’s momentum. “Bond markets are seeing something that equity markets are not,” wrote Tom di Galoma, managing director of Treasurys trading at Seaport Global Securities. Di Galoma threw up a chart showing the MOVE index, which tracks traders’ expectations for volatility in the 10-year Treasury note in the next 30 days.