Bond rout starting to sound market alarm bells
Reuters, Investing.com
U.S. Treasuries extended heavy losses on Wednesday in a sign investors are dumping even their safest assets as a global market rout unleashed by U.S. tariffs takes an unnerving turn towards forced selling and a dash for the safety of cash.
“This is beyond fundamentals right now. This is about liquidity,” said Jack Chambers, senior rates strategist at ANZ in Sydney.
The 10-year U.S. Treasury yield, the globe’s benchmark safe-haven anchor, was unmoored and long bonds were the focus of intense selling from hedge funds which had borrowed money to bet on usually small gaps between cash and futures prices.
