Economics
Bond Traders Cruise Into Wave of Data That May Shake Their World
- Weekly range of 10-year Treasury yield falls to 18-month low
- Inflation and jobs data vital to shaping investors’ outlook
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Judging by the action over the past week in the $14 trillion Treasuries market, you’d never guess that traders are just days away from receiving crucial economic data.
Things haven’t been this quiet for the world’s biggest bond market in years. The five-day average true range of the 10-year U.S. yield, which takes into account the differences between intraday highs and lows, was the narrowest since November 2015 last week. The Merrill Lynch Option Volatility Estimate index, a gauge of expected price swings in Treasuries, fell to the lowest in almost three years.