U.S. Treasury Options Skews, Bond Rally Offer Signs on Economy’s Health Jun 10, 2019 U.S. Treasury Options Skews, Bond Rally Offer Signs on Economy’s Health By Blu Putnam, Chief Economist & Erik Norland, Senior Economist, CME Group Podcast: Treasury Options Skews Treasury options skews have been reliable market indicators since 2007 Treasuries have often underperformed when options are skewed to the downside, and vice versa Expectations of a Fed rate cut have been rallying Treasury prices Listen to Podcast Bonds Raise Recession Concerns Subdued U.S. inflation whittling away risk premium in bond yields U.S. bond yields dragged lower by near-zero German, Japanese yields Trade war capping rally in equities, but the market is not in panic mode Yield curve is signaling slower growth but not an impending recession Being data-dependent, Fed unlikely to act in anticipation of a recession Watch Video SEE MORE ANNOUNCEMENTS
