Friday, October 11, 2013

Fwd: VIX

'Among the real-time monitors the administration paid close attention to during the 2011 budget battle was the Chicago Board Options Exchange Volatility Index, said William Daley, who was then the White House chief of staff.


The VIX, sometimes nicknamed the market's "fear gauge," rises when investors anticipate more stock market volatility in the future.


It surged from 13.16 on Sept. 19 to 19.6 yesterday, before dropping this morning to 17 as of 12:07 p.m. That's less than half the VIX's peak of 48 reached during the 2011 debt crisis.


Along with the VIX and broad market measures, the administration is also currently closely watching near-term Treasury yields and credit default swaps on U.S. Treasury debt.


Credit-default swaps on U.S. Treasuries fell from a seven-month high, dropping three basis point to 37 basis points, according to data compiled by Bloomberg. That compares with 21 basis points last month and about 65 basis points in 2011, the last time Congress played brinkmanship over the debt limit.'


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