FICC Focus

← FICC Focus28. Okt. · 10 Min.

All Options Considered: Is 100 High for Rates Volatility?

All Options Considered: Is 100 High for Rates Volatility?28. Okt.10 Min.

In this edition of All Options Considered, BI Chief Global Derivatives Strategist Tanvir Sandhu discusses why US rates volatility has risen from its early-2026 lows but remains near longer-run historical averages rather than at an outright extreme. He also examines how higher forward rates may limit a return to those lows, where volatility is concentrated across the swaption surface and why risks priced by the options market are becoming more two-sided.