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‘Extreme’ Market Stress Trashes Havens in a Crisis of Liquidity

  • Sell-off has now morphed into liquidity and credit event
  • Shattered confidence means investors are dashing for cash

The central bank bazookas have been fired and governments are mobilizing their fiscal response, but for many investors their battle plans are all going wrong.

Major assets aren’t behaving as expected. In early trading on Friday, both U.S. equity futures and 10-year Treasuries were rising, a day after they both closed in the green and two days after they dropped together.