A wacky week in the bond world:
Related –
Concerns rise over bond market volatility:
The NYT piece notes –
“Wall Street chieftains, huge investment firms and top
bank regulators are all sounding the same alarm.…Their fear is that in an event like a surprise
increase in interest rates, trading could rapidly dry up, causing violent
movements in bond prices and even disrupting the functioning of the market.
According to this view, the destabilizing volatility in the bond market could
make it harder and more expensive for companies and countries to borrow.”