The S&P/JPX JGB VIX saw a rise of >27% over the course of the month (1.41 to 1.80) on the back of regional geopolitical tensions and general global “risk-off” moves.
The JGB VIX Newsletter is a monthly series of market commentary on Japanese markets and monetary policy through the lens of JGB volatility.
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S&P/JPX JGB VIX remained elevated over the course of the month as geopolitical tensions in the region combined with local political uncertainty. S&P/JPX JGB VIX touched intra-month highs of 2.06 (levels not seen since April) ahead of North Korea’s anniversary weekend.
S&P/JPX JGB VIX came off the highs of the month (October 3rd close 2.03) to finish at 1.40 as uncertainty around a possible change in Japan’s overall political landscape and near-term lower house election results were resolved.