Treasury volatility touched its lowest this year as speculations the Federal Reserve will raise interest rates at its December meeting have escalated.
According to the Bank of America Merrill Lynch MOVE Index, volatility plunged to 67.69 basis points, the weakest since December 26.
The 10-year note yield was slightly changed at 2.27% in London. The price of the 2.25% security due in November 2025 was 99 25/32.
Last week, Fed officials reiterated policy should be tightened gradually following rates are increased for the first time since 2006.
The material has been provided by InstaForex Company – www.instaforex.com