Historic volatility gap in US rates spooks traders

NEW YORK: The great bond sell-off may have eased last week at long last, but a Treasury fear gauge is sending a clear message: Not since the global financial crisis have two-year Treasuries been laced with volatility risk like this.

In a week marked by haven demand on Russia-Ukraine tensions and easing bets on an outsized interest-rate hike by the Federal Reserve (Fed), options traders pared back expectations on how much interest rates will move around.