US Bond Market Volatility Index Hits Highest since 2008

The yield of US Treasury bonds has fluctuated greatly recently, which makes the situation of bond investors who have been hit hard even more difficult. Investors had previously hoped that the bond market would return to normal in 2023, but now they have to abandon such ideas and look for flexible investments to navigate the most volatile market since 2008. George Goncalves, head of macro strategy at MUFG, said that until the Fed ends its tightening cycle and the economic situation becomes clearer, the market is likely to regain a more sustained calm trend. Therefore, the expectation that the volatility of bond market yields will decline this year is "just wishful thinking", and it may not be until mid-2024 that volatility in the interest rate market will subside.