Bank of America says a jump in bond-market anxiety, paired with a selloff in financial stocks, may mean a serious shock to markets. Analysts led by Michael Hartnett made the case in the bank's Flow Show report, published Friday, pointing to a 33% jump in the MOVE index over two days.
Bank of America says a jump in bond-market anxiety, paired with a selloff in financial stocks, may mean a serious shock to markets. Analysts led by Michael Hartnett made the case in the bank's Flow Show report, published Friday.
The analysts point to the MOVE index, a gauge of expected Treasury market volatility, which has jumped 33% in the last two days, citing it alongside the selloff in financial stocks as the two gauges behind the warning.
According to BofA, the two gauges — Treasury market volatility and financial-stock weakness — may signal a big risk-off event for the market.
Source: MarketWatch (snippet-based)
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