MM084: Carnage in UK Bond/FX Markets – What happened, what’s next?
Market Maker
00:00
Bond Price Slash Yield - Is That Really What We're Seeing?
The 30-year bond on average, I think the average daily volatility is something like 0.1 basis points. And this week, it went up 120 basis points, and has now come down by 120 basis points. It literally is just quite unprecedented, the distance through which price and therefore yield changed on these bonds. The pound collapsing to the down to the kind of 103 handle, and, yeah, lowest, lowest, the pound's been killed. This is literally what an emerging market economy in real trouble. That's kind of what we see.
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