World’s Safest Market Beset by Most Volatility Since 2008

  • Swings in Treasury bills widen amid debate over Fed path
  • Looming change in money-market rules adds to fluctuations

Are Treasuries in a Bubble?

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The $1.5 trillion market for U.S. Treasury bills, known as an oasis of stability for investors worldwide, is experiencing the most volatility since the financial crisis.

Daily swings in the government’s shortest-maturity obligations are widening as debate over the Federal Reserve’s path collides with rising demand for the securities before the implementation of regulations intended to make money-market funds safer.