Your feedback is important to us!
We invite all our readers to share with us their views and comments about this article.
Disclaimer: Comments submitted by third parties on this site are the sole responsibility of the individual(s) whose content is submitted. The Daily Star accepts no responsibility for the content of comment(s), including, without limitation, any error, omission or inaccuracy therein. Please note that your email address will NOT appear on the site.
Alert: If you are facing problems with posting comments, please note that you must verify your email with Disqus prior to posting a comment. follow this link to make sure your account meets the requirements. (http://bit.ly/vDisqus)
There has been a fundamental change in government bond markets.German 10-year Bund yields, which have an inverse relationship with prices, have risen about 600 per cent since April 17, when the market touched a low of 5 basis points, or 0.05 per cent.In the past two weeks, realized volatility in 10-year German yields has been 7.5 basis points per day compared with 2.9 basis points per day in the past six months.The only reason the market dropped so low was because markets do not like fighting central banks.When one trader living in west London can apparently cause a 600 point plunge and then rebound in the US stock market in the space of 20 minutes, as has been alleged in court this year, then it does make you wonder whether so-called algorithmic trading might be responsible for some sharp swings in other markets too.
FOLLOW THIS ARTICLE