I suspect defective swaybar bushings, a quick test is to spray a little bit of WD-40 right at the bushing itself.
If the squeak goes away, then it confirms the diagnosis.
As others already said, the bushing is vulcanized into the sway bar itself, kind of a dumb engineering.
Volvo says replace replace the whole sway bar, which is EXPENSIVE!
In many other cars, the bushing can be easily replaced as it is a seprate item, not vulcanized.
However, there is a fellow on volvoforums ("ddrewyor") that found the swaybar bushing, not OEM but made by "Scan Tech". Give this a try and report back.http://volvoforums.com/forum/volvo-v70- ... ngs-39763/