In their crusade to get rampant inflation under control, the world’s major central banks risk fueling further chaos in bond markets that play crucial roles for the economies they’re trying to protect.
Policy makers, in a rush to rein in consumer prices, are quickly lifting interest rates and ending programs that made them the dominant buyers of government debt in places such as the US, Europe and Australia. Investors have yet to pick up the slack, helping create a liquidity drought that’s led to historic swings in yields in recent months.
