GLOBAL markets are breathing a huge sigh of relief following US President Donald Trump’s surprise announcement of a 90-day hiatus in much of his tariff agenda, but it would be premature to think the dangers posed by the US bond market dysfunction this week have suddenly disappeared.
When financial crises migrate to Treasuries, regulators start to get very nervous, as stress here can lead to large, rapid shifts in prices that suddenly clog up market “plumbing” and inhibit its functioning, requiring the US Federal Reserve (Fed) to step in.
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