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ZERO HEDGE reports:

(Authored by Garfield Reynolds via Bloomberg)

Even in an environment where implied volatility readings are grinding lower, there’s some noticeable angst appearing around the November US elections. 

Bond traders look much more uncertain about the outlook for six months ahead than they do for the coming month, which underscores the potential for turmoil with both presidential candidates leaning toward increased spending.

There’s also speculation that Donald Trump would follow through after his comments earlier this year that he wouldn’t reappoint Jerome Powell as Fed Chair if he wins the US election.

The so-called fear gauges for Treasuries are showing the widest gap since 2014 between expectations for yields swings six months from now and the expectations for a month ahead. That’s similar to the picture for a range of currencies – the yuan’s 6 month-1 month volatility gap is the widest since 2016.

Equities look far less concerned, with the similar spread for the VIX only around the highest this year…

The full post can be read here.

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