The Yield Curve Leads VIX (Volatility) by Three Years

Is more volatility expected ahead? This chart suggests that the CBOE Volatility Index or VIX usually follows the U.S. 10-year vs. 3-month Treasury spread (inverted) with a 3-year lag.

You may also like “VIX is in a Transitory State” and “Fed Funds Target Rate and VIX.”

Image: ClearBridge Investments

The Yield Curve Leads Volatility by Three Years