El-Erian Says Wild Bond Market Volatility Shows Loss of Anchors
- Treasuries had their worst day since March 2020 by one measure
- He hopes the Fed keeps rates unchanged in next two meetings
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The rout in the US government bond market can be attributed to the absence of all of its anchors, according to Mohamed El-Erian.
“We have lost the economic anchor. We have lost the technical anchor and we have lost the policy anchor,” El-Erian, the chief economic adviser at Allianz SE and a Bloomberg Opinion columnist, said on Bloomberg Television Friday. “What we are seeing is this enormous volatility. So far, we are lucky that when we have overshoots it triggers some sort of reaction.”