HSBC Warns: Surge in US Treasury Rate Volatility Could Pose Potential Threats

Rising Rate Volatility Sparks Concerns

According to HSBC's latest research, the sudden surge in US Treasury rate volatility represents the biggest challenge currently facing global bond markets. While this potential risk exists, the professional team believes the likelihood remains low in the near term.

This analysis stems from continuous monitoring of implied market volatility. As a key indicator, the MOVE index has generally declined since reaching its peak in April last year, though experiencing several short-term rebounds along the way.

• Rate volatility closely correlates with bond market stability
• Short-term risk expectations remain manageable
• Market participants should maintain sensitivity to volatility changes