The VS TR 2x Long VIX Futures ETF (UVIX) is experiencing downward pressure as market conditions reflect a period of subdued volatility. Recent economic data has shown robust performance, leading to a climb in U.S. yields. This has resulted in a shift in market expectations, with only one more Federal Reserve rate cut anticipated this year, down from previous forecasts. Despite the sell-off in bonds, the options market has remained notably calm, with little demand for protection in long-dated bonds. This calm sentiment is reflected in the flattening of the TLT 3M skew, indicating traders are pricing an equal chance of yields moving lower or higher in the coming months.
The current price of UVIX is $3.63, marking a 3.57% decrease from the previous close.