Bond volatility has significantly increased, with the only comparable time being just before the GFC. Yet SPY short interest and VIX is near historic lows; will they finally catch up?

Bond volatility has recently diverged from equity volatility.

The only comparable time to this was just before the GFC.

Bond volatility recently increased significantly; I wonder if the $VIX will finally catch up. pic.twitter.com/rU8F1jmANM

— Swordfish (@Swordfishv44183) October 8, 2023

$SPY short interest is near historic lows.

Have bears finally capitulated? pic.twitter.com/oBNs190hlO

— Swordfish (@Swordfishv44183) October 8, 2023

U.S. Treasuries have reached one of the most oversold levels in the last 36 years that has typically foreshadowed events such as the October 1987 crash, the Dotcom Bubble, and the Nasdaq surge (Oct 2022) pic.twitter.com/3yHLdYxGRb

— Barchart (@Barchart) October 8, 2023

Equal Weighted S&P 500 is currently trading under its 200 Day moving average by 4.2%, the most this year pic.twitter.com/XzrmvTo3H9

— Barchart (@Barchart) October 8, 2023