The CBOE Volatility Index climbed 0.9 points to close at 15.1 last week, snapping out of a drift toward year-to-date lows as the S&P 500 shed 1.4%. The catalyst wasn’t a single dramatic event but a slow-burning cocktail: surging long-term Treasury yields, a government scramble to stabilize the bond market, and options traders quietly loading up on downside protection ahead of Nvidia’s next earnings report.
Treasury yields hit levels not seen since 2007
The 30-year Treasury yield surged to 5.33% intraweek, its highest reading since 2007. Treasury Secretary Bessent responded by announcing a doubling of the Treasury’s bond buyback program to $4 billion.
The MOVE Index, which measures implied volatility in the Treasury market the same way the VIX measures it for equities, rose to 73, landing in the 54th percentile. Meanwhile, the VXTLT 20-Year Bond Volatility Index jumped from the 13th to the 32nd percentile in a single week.
Nvidia options tilt bearish ahead of August earnings
