VIX Soars To 5-Month High: What Surging Treasury Yields Mean For Stocks
Portfolio Pulse from Piero Cingari
The CBOE Volatility Index (VIX) has surged to a 5-month high, indicating growing apprehensions in financial markets. This surge is largely due to the rise in U.S. Treasury yields, which have reached levels not seen since 2007. The increase in bond yields has caused a decline in the value of the iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT), which has dropped by over 50% since March 2020. The rise in yields is also impacting the stock market, with several sectors relying on low or stable interest rates for their operations and profitability. ETFs such as Proshares Trust VIX Short-Term Futures ETF (NYSE:VIXY), Proshares Trust VIX Mid-Term Futures ETF (NYSE:VIXM), and 2x Long VIX Futures ETF (NYSE:UVIX) provide investors with exposure to stock market volatility.
October 04, 2023 | 4:47 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
The iShares 20+ Year Treasury Bond ETF (TLT) has dropped by over 50% since March 2020 due to the rise in U.S. Treasury yields.
The rise in U.S. Treasury yields signifies a decline in the value of bonds, which has directly impacted the value of the iShares 20+ Year Treasury Bond ETF (TLT).
CONFIDENCE 100
IMPORTANCE 100
RELEVANCE 100
POSITIVE IMPACT
The 2x Long VIX Futures ETF (UVIX) provides investors with exposure to stock market volatility, which is currently high due to rising U.S. Treasury yields.
The surge in the VIX indicates high stock market volatility, which is beneficial for ETFs like UVIX that provide exposure to this volatility.
CONFIDENCE 100
IMPORTANCE 100
RELEVANCE 100
POSITIVE IMPACT
The Proshares Trust VIX Mid-Term Futures ETF (VIXM) provides investors with exposure to stock market volatility, which is currently high due to rising U.S. Treasury yields.
The surge in the VIX indicates high stock market volatility, which is beneficial for ETFs like VIXM that provide exposure to this volatility.
CONFIDENCE 100
IMPORTANCE 100
RELEVANCE 100
POSITIVE IMPACT
The Proshares Trust VIX Short-Term Futures ETF (VIXY) provides investors with exposure to stock market volatility, which is currently high due to rising U.S. Treasury yields.
The surge in the VIX indicates high stock market volatility, which is beneficial for ETFs like VIXY that provide exposure to this volatility.
CONFIDENCE 100
IMPORTANCE 100
RELEVANCE 100