Busy August as rate volatility surges

摘要

The recent plunge in global bond yields has sent interest-rate volatility to its highest level in more than three years and triggered a flurry of trading activity, providing a welcome lift for banks' bond-trading businesses during the August holiday period. The MOVE index tracking US interest-rate volatility has roughly doubled from a few months ago to hit levels last seen in early 2016. That follows a rapid tumble in bond yields amid concerns over global growth and the US-China trade war. Nearly USS17bn in bonds now have negative yields, or just under a third of the global tradable bond universe, according to a recent JP Morgan report.