Treasury Volatility Surges as 30-Year Yields Near 19-Year High on Futures Selling
Updated
Updated · Bloomberg · Jun 4
Treasury Volatility Surges as 30-Year Yields Near 19-Year High on Futures Selling
1 articles · Updated · Bloomberg · Jun 4
Summary
Large waves of Treasury futures selling hit the market during last month’s bond selloff, adding fresh volatility as long-dated yields climbed toward a 19-year high.
Mortgage-backed securities were being pummeled at the same time, pointing to growing mortgage hedging activity as a key force amplifying moves in Treasuries.
Vishal Khanduja flagged the pattern as unusual because the futures sales arrived just as stress in the mortgage market intensified, linking two normally connected but distinct pockets of fixed income.
The episode underscores how hedging flows—not just shifts in economic outlook or Fed expectations—can drive abrupt swings in the $29 trillion Treasury market.