It was a celebrity breakup, of sorts, in markets.
At the start of this year, credit investors undertook a conscious uncoupling from oil prices. As the cost of a barrel of West Texas Intermediate leaped in the wake of the production cut agreement announced by OPEC in November, a measure of junk-rated bonds lagged behind.
The $1.5 trillion market for U.S. Treasury bills, known as an oasis of stability for investors worldwide, is experiencing the most volatility since the financial crisis.
Daily swings in the government’s shortest-maturity obligations are widening as debate over the Federal Reserve’s path collides with rising demand for the securities before the implementation of regulations intended to make money-market funds safer. Read more