Official actions have succeeded in stabilising the capital markets, even as much of the world's economy remains locked down, and the hardships faced by households and businesses intensify.
In the middle part of last month, the markets were as dysfunctional as they have ever been. Volatility remains elevated but normalising. The much-watched volatility of the S&P 500 (VIX) peaked near 85% on March 18 and finished last week below 42%. In the three months through January, it averaged about 13.5%. The same is generally true for bond and currency volatility: The market disruption peaked and has been steadily declining without yet returning to status quo ante levels.
When the VIX reached 85%, and MOVE (an index that tracks the implied volatility of the Treasury market) reached nearly 165%, a full-fledged panic was underway. Many questions crisis, including duration, breadth, and magnitude, are still unanswerable.
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An article by fxstreet.com