Investors are having a ‘panic attack’ about the bond market
By Jennifer Sor, Business Insider
The Federal Reserve has sowed panic among investors and that’s led to the latest bout of dysfunction in the bond market, Wall Street experts say.
Chaos in US government bonds has become the top concern for markets over the past few weeks, with the yield on the 10-year US Treasury recently notching a 16-year-high. That’s as markets reset and come to grips with the reality of higher-for-longer interest rates, which Fed Chair Jerome Powell drove home for investors at the September FOMC meeting. It’s also partly a function of fears related to the mounting US debt balance and the possibility of a recession barreling towards the economy.