Fragile U.S. Rates Market Braces for Volatility From Everywhere
- Inversion in swaps reflects expectations for near-term turmoil
- Obscure event may be trigger for next crisis: Academy’s Capelo
This article is for subscribers only.
The fragility of the U.S. bond market was fully exposed Tuesday as U.S. President Donald Trump’s tariff delay pushed rates higher and a ramp-up of tensions in Hong Kong helped pull them back.
The widely followed spread on the 2-year and 10-year Treasury yields went back to teetering on the edge of inversion, and a second indicator within swaps continued to flash a dire warning.