Monday, March 22, 2010

Bond volatility is low.

Voltron says: The "MOVE" index is to the bond market what the VIX (volatility index) is to stocks. It measures how much people are willing to pay for "insurance" on bonds. The current level of 80 indicates extreme complacency. The market tends to get "surprised" when it is complacent. It can take a year or two for something to trigger a panic.

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