Market volatility is ominous and cannot be swept under the carpet

Market volatility is ominous and cannot be swept under the carpet. Gavyn Davies, former partner at Goldman Sachs says The extraordinary volatility in all financial asset classes in the past week can only be described as ominous. On Wednesday, the US ten year treasury, perhaps the most liquid financial instrument in the world, traded at yields of 2.21 per cent and 1.86 per cent within a matter of hours. This type of volatility in the ultimate risk free asset has previously been seen only in 2008 and other extreme meltdowns, so it clearly cannot be swept under the carpet. Davies concludes that the markets may be starting to doubt whether the central banks actually have the weapons needed to stop global deflationary forces in their tracks. Article may require registration: (VIEW LINK)


MORE ON



Livewire News brings you a wide range of financial insights with a focus on Global Macro, Fixed Income, Currencies and Commodities.

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.