Smart Charts - U.S. yield spread indicates higher volatility

Updated: Mar 5



The yield spread between the 10 and two-year note indicates higher implied volatility.


The yield spread between the 10-year note and the two-year note indicates higher implied volatility for the S&P 500. Historically, when the yield spread has decreased and approached inversion the implied volatility for the S&P 500 (VIX index) has increased. In the chart, the VIX index has a lag of three years.


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