Volatility in bond markets has been heating up - in fact, yield fluctuations last Thursday were some of the biggest in 2015. This week’s chart shows the 1 week rolling volatility of the German 10 year Bund yield, which spiked after European Central Bank’s President Mario Draghi confirmed on 4 June that his stimulus programme is working to boost the Eurozone economy. The international Monetary Fund cut its 2015 GDP growth forecast for the US form 3.1% to 2.5% on the same day. It may be the start of the summer, but investors certainly aren’t taking it easy as they position themselves for perceived shrinking divergences in the world’s largest economies.
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