Bond Market in Deepest Central Bank-Induced Slumber Since 2014
- MOVE index tumbles as traders see placid monetary policy ahead
- Calm comes despite concerns about Deutsche Bank, U.S. election
Is There a Bubble Brewing in the Bond Market?
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Concerns about a contentious U.S. presidential election and the health of Germany’s largest bank still aren’t enough to stir a Treasuries market emboldened by accommodative central banks.
A measure of expected price swings in Treasuries sank to its lowest level since December 2014 as turmoil elsewhere in financial markets pushed investors into haven assets. Benchmark 10-year securities rallied for a second day after Monday’s U.S. presidential debate and as European stocks halted a two-day rout amid concern about Deutsche Bank AG’s financial footing.