Treasuries Volatility Drops Toward '15 Low as Fed Seen Sidelined
- Futures market sees liftoff delayed until March next year
- 10-year Treasury yields hovering near 2 percent this month
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Treasuries investors are paring bets for price swings toward the lowest level this year as the odds recede for the Federal Reserve’s first interest-rate increase since 2006 to come by December.
A gauge of U.S. sovereign bond-market volatility dropped to 71 basis points this week, from 95 basis points as recently as August, as futures traders predict the Fed will be sidelined until March. The lowest level this year was 70 basis points in late July. Yields on benchmark 10-year notes have hovered near 2 percent since the start of this month.