Key Takeaways with Craig
US Equity Indexes gave up some earlier gains but still managed to close mixed with the Dow Jones Industrials down slightly and the Nasdaq rising by less than 1%. Implied volatility in CME’s Equity Index options was near steady on the day. US Treasury Yields were lower as the Micro 2-Year futures fell by about 8 basis points and the Micro 10-Year by about 3.5, bringing the 2s versus 10s inversion in slightly to about 60 basis points.
CME Natural Gas futures prices rose by over 5% after several weeks of a steady decline. According to CME’s CVOL indexes, implied volatility in Nat Gas options continued to fall and is near the lowest levels we’ve seen since about mid-October of last year.
A quick check-in with the CVOL dashboard tells us the decline in Natural Gas (and Energy in general) volatility bucks the trend for most of the asset classes for which CME generates a CVOL value. As you can see in the image below, which is an excerpt from the CVOL dashboard, the aggregate CVOL indexes in Treasury, G5 (currencies), Metals and Ag Products all rose today. Remember, the CVOL tool is available on CME’s website and provides users a clear, concise view of representative options volatility in many of CME’s major asset classes.
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