Bond market volatility index spikes amid rising Treasury yields

The MOVE index surged to about 105 basis points this week, reaching its highest level since March amid a selloff in government bonds and rising US Treasury yields.

Benchmark US Treasury yields have largely climbed above 5%, with five-year yields crossing that threshold for the first time since 2007 due to inflationary pressure and climbing oil prices.

While high-grade corporate spreads remained relatively tight at 77 basis points, strategists warn that prolonged high rates could weigh on economic activity and squeeze corporate credit quality.