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Cracks Race Across US Bond Market as Bank Angst Hits Liquidity

Jun 13, 2023Jun 13, 2023

Edward Bolingbroke

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Pockets of the world's deepest bond market are starting to buckle under soaring trading volumes and wild swings as bank meltdowns compel traders to slash rate hike bets.

Trading was briefly halted in a key corner of the US interest-rate market Wednesday as futures contracts soared through circuit breakers. Signs of tension are building within US dollar funding markets. Liquidity has diminished in parts of the cash Treasury market after the collapse of three regional US lenders and amid rising concern about Credit Suisse Group AG's financial health.