[New post] UPDATE: The Domestic GDP, Bond Yield Surge and Stock Market Volatility [VIX]
Editor-in-Chief posted: " *** *** By Staff Reporters *** The U.S. economy reversed course in this year's first quarter, when it shrank at an annual rate of 1.4% after posting full-year growth of 5.7% in 2021. While many economists believe the first-quarter setback"
The U.S. economy reversed course in this year's first quarter, when it shrank at an annual rate of 1.4% after posting full-year growth of 5.7% in 2021. While many economists believe the first-quarter setback was temporary, it marked the worst quarterly GDP result since the second quarter of 2020, when the pandemic triggered a brief recession.
And, despite a relatively flat result in the latest week, the yield of the 10-year U.S. Treasury bond jumped in March and April, climbing from 1.83% at the start of that two-month period to around 2.89% on Friday. Rising interest rates have eroded bond prices, pushing yields higher.
Finally, the stock market's relative calm in the first half of April was fleeting, as the past two weeks produced a 47% jump in an index that measures investors' expectations of short-term volatility. The CBOE Volatility Indexꟷalso known as the VIXꟷrose to an index level of 33.4 on Friday, up from 22.7 on April 15.
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