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Haven assets in demand after day of heated rhetoric on North Korea and nukes

Not surprisingly haven assets such as gold and the Japanese yen are up today. So are volatility measures such as the CBOE S&P 500 Volatility Index (VIX.) Surprisingly, the rush to safety hasn’t been as strong as you might expect after a day when U.S.President Donald Trump threatened North Korea with fire and fury and that country responded by threatening to nuke Guam.

No volatility anywhere

No volatility anywhere

By this time you’re certainly aware that volatility in the U.S. stock market is near record lows. (It’a actually below record lows when you recalibrate the VIX for revisions to that index.) But the lack of volatility in the bond market may have escaped your attention. It’s even more pronounced than the lows in the CBOE S&P 500 Volatility Index (VIX.)