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Bond Traders Fear Oct. 15-Style Volatility Could Repeat

This is what happened to the 10-Year U.S. Treasury yield on October 15 of last year.

This is what happened to the 10-Year U.S. Treasury yield on October 15 of last year.

Bloomberg

A group of U.S. Treasury market professionals sponsored by the Federal Reserve Bank of New York expressed concern that the large gyrations seen in that market on Oct. 15 could be repeated in the future, according to minutes of their meeting released Monday.

“Members generally suggested that, given the structural changes in the market, including growth of automated trading and impact of regulations, there is an increased potential for further episodes of volatility and impaired liquidity in Treasury markets,” minutes of the Treasury Market Practices Group’s Feb. 26 meeting showed.