Reasoning
The MOVE index has spent only 12 percent of trading days above 130 since 2020, and the current 3.50 to 3.75 percent federal funds target range with a June 2026 SEP median of 3.8 percent signals policy stability that historically compresses volatility. Nine of eighteen SEP participants projecting a year end 2026 rate above the current range further reduces the odds of large bond market swings. The post June 17 meeting erasure of the cutting bias and the absence of any scheduled FOMC easing through December 2026 limit the near term triggers that typically drive five day runs above 130.Key uncertainty
Whether the September 2026 CPI or employment report will surprise materially enough to force an immediate policy rethink.