Lates News

An indicator of US Treasury bond volatility has dropped to its lowest level in nearly three and a half years, further indicating that the market is stabilizing after months of turbulence. The ICE BofA MOVE Index (which measures expected yield volatility) closed on Thursday at its lowest level since early 2022. Another positive sign is the strong demand for US 10-year and 30-year Treasury bond auctions this week. Since the beginning of the year, concerns about President Donald Trump's trade tariffs and the possibility of increasing fiscal spending leading to an unsustainable budget deficit have impacted US Treasury bonds. However, these negative factors have not completely disappeared as the yield on 10-year Treasury bonds rose slightly on Friday, causing Treasury bonds to decline for the second consecutive week. Mohit Kumar, Chief Strategist at Jefferies International Europe, wrote in a report that the 30-year Treasury bond auction on Thursday had a "good response, easing some worries." He added that due to fiscal concerns, he is still avoiding long-term bonds in the US, Europe, and UK markets.