The Currently Odd Volatility of Long-term US Treasuries
The US sovereign bond market is traditionally viewed as a safe-haven by investors. When US equity markets are under stress, investors generally purchase US Treasury bonds, pushing yields lower and bonds higher. Traders seeking convexity prefer buying the long-end of the yield curve, which causes the…
Why The Unwind Of The Carry Trade Is Increasing Volatility
Central bank interest rates are of fundamental importance to exchange rates and foreign exchange flows as they determine the direction and profitability of carry trades. When the interest rate differential between two central banks is positive, it is generally possible to borrow a currency at…