New Regime of High Volatility Defied by These Crucial Metrics

  • Move in back end of VIX curve remains muted despite turbulence
  • Short postions in long-dated Treasuries may signal coming bid

T. Rowe Price's Page Says 'We're Entering a Period of Turbulence'

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Investors preparing for an era of higher volatility may want to take a pause: A sustained period of price swings isn’t in the cards quite yet.

Changes in volatility measures may only be short-term reactions rather than a wholesale regime shift, offering a potential tonic to traders who have been on edge since inflation data punched up turbulence in late January. That handed global stocks their worst month since 2016, while U.S. 10-year yields marched to the highest in four years.