Brian Chappatta, Columnist

Bond Market Screams for Help But No One Answers

One of the worst Treasury auctions ever, a mini flash crash and big moves in dormant front-end rates. Thursday had it all, but don’t expect the Fed to get too worked up.

February 25, 2021 at 8:44 PM UTC

By Brian Chappatta

Brian Chappatta is managing editor of Bloomberg News' leveraged finance and distressed debt teams. He was previously managing editor and team leader of its wealth group. Before that he was a Bloomberg Opinion markets and finance columnist and a bonds reporter for Bloomberg News.

No one’s listening.
Photographer: Odd Andersen/AFP/Getty Images

Provide news feedback or report an error

Site feedback:

Take our Survey

This article is for subscribers only.

Thursday will go down in history as one of the wildest trading sessions ever in the $21 trillion market for U.S. Treasuries.

In early U.S. hours, the benchmark 10-year Treasury yield reached a new one-year high of 1.46%, just about the same as the dividend yield on the S&P 500 Index. I’ve flagged the level at which the two meet as a possible inflection point because it means that government bonds at least offer comparable income payments to stocks for the first time since before the Covid-19 pandemic.