US$21 trillion treasuries mystery is bedeviling global markets
NEW YORK: Bond traders have been saying for years that liquidity is there in the world’s biggest bond market, except when you really need it. Last week’s startling gyrations in US Treasury yields may offer fresh backing for that mantra, and prompt another bout of soul-searching in a US$21 trillion market that forms the bedrock of global finance. While stocks are prone to sudden swings, such episodes are supposed to be few and far between in a government-debt market that sets the benchmark risk-free rate for much of the world. Yet jarring moves keep occurring periodically in Treasuries, wi...