Oil-Rates Correlation Jumps To A 35-Year High

Summary While index volatility declined broadly last week, single stock volatility increased. This can be seen in the divergence between the VIX Index and VIXEQ Index. Risk sentiment turned more constructive in the options market, with skew flattening across all the major indices. Cross-asset correlations have become more extreme in recent months. Abu Hanifah/iStock via Getty Images Cross-Asset Volatility: Implied volatilities declined across asset classes last week after the Fed raised rates as expected by 25bps. Interest rate volatility fell even as nominal yields increased, with the MOVE Index down 1.5nms to 80bps This article was written by Cboe Global Markets 942 Followers Follow Cboe Global Markets (CBOE), a leading provider of market infrastructure and tradable products, delivers cutting-edge trading, clearing and investment solutions to market participants around the world. The company is committed to operating a trusted, inclusive global marketplace, providing leading products, technology and data solutions that enable participants to define a sustainable financial future. Cboe provides trading solutions and products in multiple asset classes, including equities, derivatives and FX, across North America, Europe and Asia Pacific.