CoinVoice latest learned that, according to CoinDesk, the U.S. Treasury market volatility indicator MOVE (Merrill Lynch Option Volatility Expectations) index has been rising continuously after hitting a low of 82 points in mid-December, reaching 102.78 points on January 8. As the world's second-largest financial market, increased volatility in the Treasury market often signals tightening financial conditions, which may trigger risk aversion across various financial markets.
Latest data shows that the manufacturing sector performed better than expected, suggesting strong economic resilience and ongoing inflationary pressures, driving U.S. Treasury yields higher across the board. Specifically, the 30-year Treasury yield rose to 4.92% (a new high since November 23), while the 10-year yield increased to 4.68% (the highest level since May).
Since Trump won the election on November 5, the MOVE index saw a significant drop, leading to a widespread rally in risk assets. However, this upward momentum began to weaken when the MOVE index hit a low in mid-December. On January 8, Bitcoin dropped 5% to $96,900, and the S&P 500 fell over 1%. Analysts point out that the bond market currently dominates the broader market trends, and risk assets are unlikely to regain upward momentum before the Treasury market stabilizes. [Original link]
