NEW YORK: The US$15.8 trillion Treasuries market has become exceptionally placid, and volatility-hungry bond traders fear the Federal Reserve’s about to make it even quieter.
Days before Fed policymakers meet, Bank of America Corp’s MOVE Index continued a recent collapse, falling within a hair of the record low set in 2017. It slumps when traders expect smaller swings in Treasury yields. Things have been so tranquil that in February, yields on 10-year notes moved in an 11.6-basis-point range, one of the narrowest monthly bands ever recorded.
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