Key Takeaways with Craig
US Equity Index prices were little changed to finish off the week with the divergence in the Russell 2000 and Nasdaq indexes continuing as the Russell was down slightly while the Nasdaq ticked up. Implied volatility in CME Group’s Equity Index options declined this week and is trading at very low levels relative to the last 12 months. US Treasury yields traded higher today and CME’s FedWatch tool continues to suggest a “pause” at next week’s FOMC meeting. Here are the weekly net price and volatility changes in some of CME’s major products using QuikStrike and CVOL data.
- E-mini S&P 500 and Nasdaq-100 were nearly unchanged on the week and, as we stated above, implied volatility traded lower.
- WTI Crude Oil futures prices were down just a bit while CVOL levels were down significantly from the pre-OPEC levels last Friday.
- Micro 10-Year Yield vs 2-Year Yield widened to nearly 80 basis points.
- Implied volatility in all of the products we looked at, save for Bitcoin, was lower.
That’s how we set up as we head into a week that will bring us the latest CPI number and FOMC decision. For those here in the northern hemisphere, have a happy and safe summer weekend and we’ll see you on Monday.
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