America’s becalmed bond market

The eerie calm in stockmarkets has hogged the headlines of late, but “equities are not the only becalmed asset class”, notes Robin Wigglesworth in the Financial Times. The Move index, used to measure the implied volatility of the US Treasury market, is now at a three-year low. “This looks peculiar.” US government debt is “subject to fierce cross-currents that should arguably produce some turbulence”.

On the one hand, “there is plenty to back bullish views”, as Scott Dorf points out on Bloomberg. In a world of low and even negative interest rates, investors remain [...]