CBOE Taps Rate Concerns With Futures on Bond Volatility
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One of the biggest concerns on Wall Street is that last month’s volatility in bond yields will recur as the Federal Reserve withdraws stimulus. Futures traders are getting a new way to protect themselves.
Beginning today, investors will be able to buy and sell futures on the Chicago Board Options Exchange’s 10-Year U.S. Treasury Note Volatility Index, known by its ticker VXTYN, according to a statement from CBOE Holdings Inc. The contracts are designed to hedge against or speculate on turbulence in prices of government bonds.