Loss of Anchors Evident in Wild Bond Market Volatility, El-Erian Asserts

Loss of Anchors Evident in Wild Bond Market Volatility, El-Erian Asserts


(Bloomberg) — The rout in the US government bond ​market can be attributed to the absence of all ⁢of its anchors, according to Mohamed El-Erian.

Most⁢ Read⁢ from​ Bloomberg

“We have lost the economic anchor. We have lost ⁣the technical anchor and we have lost the policy anchor,” El-Erian, the chief economic adviser at Allianz SE‍ and a Bloomberg Opinion ‌columnist, said on Bloomberg Television Friday. “What‌ we are seeing is this enormous volatility. So far, we are lucky that when we have overshoots ‍it triggers some sort of reaction.”

It’s been a ‍week for the⁤ Treasury market books, said‍ El-Erian. In the first part, yields moved lower on dovish speak from Federal Reserve officials. By Wednesday, yields shifted higher on concerns of sticky inflation, reiterated by a hotter-thanel-erian-asserts.html” title=”Loss of Anchors Evident in Wild Bond Market Volatility, El-Erian Asserts”>-forecast consumer price index reading ‌on Thursday. That same‌ day, the market had its worst day since March 2020 by one ‍measure, when the 30-year Treasury yield rose as much as 19 basis points, stoking ⁢fears of…

2023-10-13 12:15:37
Post from finance.yahoo.com
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(Bloomberg) — According to Mohamed El-Erian, the rout in the US government‍ bond market can be attributed to the absence of⁣ all of its⁣ anchors.

Most Read from Bloomberg

“We have lost the economic anchor. We have lost the technical‌ anchor and we have lost the policy anchor,” El-Erian, the chief economic⁤ adviser at Allianz SE​ and a Bloomberg Opinion columnist, said on Bloomberg Television Friday. “What we are seeing is this enormous volatility. So far, we are lucky that when we have overshoots‌ it triggers some sort of reaction.”

It’s been a week for the Treasury ⁤market books, said El-Erian. In the first part, yields moved lower on dovish speak from Federal Reserve‍ officials. By Wednesday, yields shifted higher on concerns of sticky ‌inflation, reiterated by a hotter-than-forecast consumer price index reading on Thursday. That ⁣same day, the market had its worst day since March 2020 by one measure, when⁤ the 30-year Treasury yield rose as much ⁤as 19 basis points, stoking fears of…

2023-10-13 12:15:37
Post from finance.yahoo.com
rnrn

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