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)