Everyone fears a second wave of inflation. Bond volatility doesn't.
The Vol SplitVolatility is not disappearing. It is simply moving. Bond volatility is collapsing while tech volatility remains remarkably well bid, creating one of the largest divergences between the two markets in years. The move is becoming increasingly difficult to ignore.Bond volatility
Bond volatility is beginning to diverge from both the VIX and the S&P 500. Still early, but worth watching.
Nobody sees a bubble. Everyone owns semis. Everyone fears inflation. Bond vol doesn't. Hmmmm...
Markets are behaving as if volatility has been abolished. Meanwhile, bond vol is exploding, implied correlations remain…
Investors warn that US stock markets are not reflecting inflation risks. High energy prices and the Iran conflict are overlooked.…
So why aren’t more buying inflation-protected bonds?
Despite the competition for capital, share markets have marched ever higher
