Strategists at Goldman Sachs write that.......>

BONDS: Strategists at Goldman Sachs write that interest rate volatility has 

dropped below the 2007-2009 Global Financial Crisis Lows. 

- more specifically Goldman finds that "uncertainty over the inflation outlook

matters for long-term rate volatility, while uncertainty surrounding the path

for policy rates tends to drive the front-end of the volatility term structure.

On our estimates, very low trailing inflation and central banks' 'forward

guidance' can explain a significant part of the drop in realized and implied

rate volatility."

- Looking forward, the higher level of inflation and smaller QE is expected to

drive the bond term risk premium higher and push up rate volatility.