A build-up of short positions in long-dated Treasuries has sent ripples through some measures of interest-rate volatility, where daily moves are rivaling those of the March 2020 liquidity crisis. This week’s gyrations in one-month 30-year swaption volatility — a measure of how much long-term rates are implied to move on one-month horizon — dwarf anything that’s occurred during the past three years. In other words, traders are unnerved by the sudden spike in 30-year Treasury yields to 4.42%, a level last seen in 2011, and the failure of dip-buying to contain it. “New short risk is driving the cheapening with extreme ... (full story)