Inflation Outlook Is Seen Binding VIX to Treasury Yields
“Inflation fears have been driving stock volatility” in the U.S., according to Jason Goepfert, Sundial Capital Research Inc.’s founder and president. He drew the conclusion in a post Friday on his SentimenTrader blog. Goepfert cited the relationship between the Cboe Volatility Index, or the VIX, and the yield on 10-year Treasury notes. Their 20-day correlation rose last week to its highest level since September 1999, according to data compiled by Bloomberg.