Market Extra: Wall Street’s ‘fear gauge’ is falling, bonds and the stock market are soaring—something’s gotta give

Curious moves in asset prices are raising eyebrows on Wall Street.

Of particular note is the sustained and simultaneous rally in government bonds and stocks. Meanwhile, Wall Street’s “fear gauge” just touched a 10-year low, as other measures of market volatility hover at the lowest levels in decades.

What gives?

It is hard to say but the market’s recent moves have been offering mixed signals about the outlook for the economy, raising questions about the ability of the run-ups in stocks and bonds to persist.

Perhaps the odd correlation between stock and bond prices has drawn the most attention.

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