U.S. Treasury market volatility has eased notably over the past month as
geopolitical tensions in the Middle East have cooled, says LPL Financial's Adam
Turnquist in a note. "The extended cease-fire between the U.S. and Iran has
reduced near-term escalation risks and allowed more time for diplomatic
negotiations," the chief technical strategist says. With implied volatility now
back near prewar levels, the Treasury market appears priced for a relatively
benign geopolitical backdrop, leaving little cushion if risks re-emerge, he
says.
