Bond market volatility: There's a VIX for that

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As the Federal Reserve gets set to chart a future course off zero interest rates, investors now have a chance to play along with how the moves will affect the government bond market.

The Chicago Board Options Exchange has added another wrinkle to its package of "VIX"—or Volatility Index—products, with futures that trace market sentiment over the direction of the 10-year Treasury note.

Futures trading on the 10-year U.S. Treasury Note Volatility Index (ticker VXTYN) began a week ago, about a month too late for October's whipsaw activity in government bond yields but still plenty ahead of the real action in rates that should start once the Fed begins the expected normalization process in 2015.