Liquidity Angst Builds in Bond Market on Surging Risk Indicators
- Gauge of bank risk has more than doubled from a week ago
- Investors on ‘high alert’ for credit market spillover: NatWest
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Anxiety about an emerging liquidity crunch is roiling global bond markets.
A key gauge of banking-sector risk, known as the FRA/OIS spread, soared to its highest level in almost two years, while dollar swap spreads widened, suggesting stresses in U.S. markets are becoming increasingly severe. Here are five charts to watch for further angst: