After the Yuan devaluation and very difficult times for many emerging markets, the Volkswagen scandal hits and the equity volatility rises. VIX also seems to be finding a new higher normal around 20-25 after spikes >30. Treasury volatility calmer than equity in this environment and not reacting as much to the upside. One factor that keeps treasuries calmer is the fact that in Yuan terms the return is a little bit better after the devaluation.

2015-10-08

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