Market volatility has gone up over the last few days. In fact it was under 12 during the past 5 days and recently jumped to over 18. Currently, it went down to the 16 range, loosing more than 6%.
The main issue here has been the market realizing that rates may rise in September. This, in my opinion, is highly doubtful (see previous post on Fed outlook).
Our trading strategy took advantage of this situation by closing a position at a profit.