The World’s Most Important Market Has a Big and Repetitive Problem
The Marriner S. Eccles Federal Reserve building in Washington, D.C.
Photographer: Joshua Roberts/BloombergThis article is for subscribers only.
The recent extreme moves in the US Treasury market were both unusual and entirely predictable.
Yields on the benchmark 10-year US Treasury jumped as much as 28 basis points on Monday, a more than four standard deviation move and the kind of thing that’s only supposed to happen once in more than a century. Yields on two-year US government debt were even more volatile, soaring as much as 35 basis points.