Volatility Falls On Ceasefire Hopes, Yet Caution Remains

Cboe Global Markets667 FollowersFollow5ShareSavePlay(6min)CommentsSummaryInterest rate volatility declined the most, with the VIXTLT Index falling over 31 pts wk/wk to 85 bps vol as Powell signaled the Fed will take a “wait and see” approach to any energy-driven inflation increase.The decline in SPX call skew and call convexity contributed over 2 pts to the 7 pt decline in the VIX Index last week.The SPX vol curve flipped from inverted to flat last week, with the decline in volatility mostly driven by the front end. Torsten Asmus/iStock via Getty Images By Mandy Xu Cross-Asset Volatility: Implied volatilities fell across asset classes last week on optimism over an Iran ceasefire. Interest rate volatility declined the most, with the VIXTLT Index falling over 31 pts wk/wk to 85This article was written byCboe Global Markets667 FollowersFollowCboe Global Markets (CBOE), a leading provider of market infrastructure and tradable products, delivers cutting-edge trading, clearing and investment solutions to market participants around the world. The company is committed to operating a trusted, inclusive global marketplace, providing leading products, technology and data solutions that enable participants to define a sustainable financial future. Cboe provides trading solutions and products in multiple asset classes, including equities, derivatives and FX, across North America, Europe and Asia Pacific.