At-a-Glance
Key Takeaways with Craig
US Equity prices began the week mostly lower, while Treasury yields continued to climb. In fact, CME’s 10-Year Treasury Yield future was up by 11.5 basis points, to over 4.15%, while the 2-Year was up by about 7.5 basis points. The curve between the 2s and 10s steepened to nearly 20 basis points. This price movement was reflected in the options market as well, where CVOL in CME’s 10-Year options rose to nearly a one-year high, which is depicted in the top CVOL graph below. CVOL in the 2-Year options is shown in the lower graph below and, as you can see, while not reaching the highs we saw in early August, is trading at elevated levels versus most of 2024.
In other CME Group markets, metals prices continued to trade at historic levels. While much has been written about the record prices in Gold, Silver has also rallied to highs not seen in the last 10 years. In the Silver options market, CVOL is trading near one-year highs. The CVOL graph on the right-hand side of the image below depicts the price (dotted) and CVOL (solid) over the last 5 years.
So with about 2 weeks until the US Elections, volatility in both CME’s Interest Rate and precious metals markets is trending higher.
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