Mounting volatility in government bond markets is intensifying fears on Wall Street that this year’s wild swings in the world’s safest assets could further destabilize already-rocky financial markets.
The worst bond rout in a generation carried the yield on the 10-year U.S. Treasury note above 4% for the first time in more than a decade on Wednesday, before emergency moves by the Bank of England prompted the biggest one-day rally in more than 13 years. The yield, a benchmark for borrowing costs on everything from mortgages to corporate loans, fell a quarter of a percentage point in a day.
