Treasuries Liquidity Deteriorates Most Since Brexit Vote: Chart

The bond-market rout triggered by Donald Trump’s election victory has also crimped investors’ ability to trade, according to a Bloomberg index measuring how much U.S. government-bond yields are deviating on average from a fair-value model. By that measure, the deterioration of liquidity in Treasuries has been the most severe since the U.K.’s June vote to exit the European Union. Bonds around the world headed for their steepest two-week loss in a quarter-century.