Analysis: Investors sidestep rate-trade risk and wait on the sidelines as the U.S. Treasury market swings sharply

PANews, September 25 — A gauge of U.S. Treasury volatility is posting its biggest gain in more than a year, after bond yields climbed to multi-decade highs and jolted the market out of its recent slump.

The ICE BofA MOVE Index, a measure of bond-market volatility, has risen about 29.69% this week, its biggest gain since last April's so-called "Liberation Day." At that time, the sweeping import tariffs rolled out by Trump triggered turmoil across global markets. The index has now climbed to its highest level since March of this year, when the war in Iran had just broken out. With the market swinging violently, many traders have opted to stay on the sidelines. For example, Adam Kurpiel, head of rates strategy at Société Générale, said his team currently holds a neutral view on U.S. rates and is waiting "for volatility to decline before trading."