US Ten Year Treasury notes are exhibiting a highly unusual correlation with a number of global assets. This abnormality is setting up a variety of potential trades, an October 3 Bank of America Merrill Lynch report notes. Many of these trades are based on “rates-slaved” low volatility assets, the Global Equity Volatility Insights report noted, pointing to long convexity trades and strategies that benefit from a pick-up in interest rate volatility.
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![Global Equity Volatility Insights](data:image/svg+xml,%3Csvg%20xmlns='http://www.w3.org/2000/svg'%20viewBox='0%200%201137%20343'%3E%3C/svg%3E)
Interest rate volatility is at interesting, if not troubling lows, depending on who one listens to. The...
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