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Rates Spark: A cacophony of mad stuff
Some notable moves through Thursday. First, volatility ratcheted lower. Remarkably so. The CBOE volatility index dipped to 17, versus a long-run average of 19. That's quite a benign reading against a backdrop of tremendous war uncertainty. Second, and related, the S&P 500 hit a new all-time high. There's been a notable separation here between equities supported by strong earnings, and the headwinds being posed by the higher oil price. Third, rate-hike concerns continued to build. No changes in rates from the major central banks this week, but they are all morphing in the direction of hikes, especially the ... (full story)