The changing dynamics of risk between stocks and bonds

There is a large divergence between the VIX stock and MOVE bond volatility indices in the last month. The VIX has usually shown more volatility of volatility and larger short-term spikes. The MOVE index is more stable and will not see large spikes. The Ukraine-Russia War forced both indices higher, but the MOVE is now approaching highs while the VIX has fallen to levels seen last year. With higher inflation and more Fed rate increases expected, bonds have now become the risker asset in the short run.