US Treasuries’ rollercoaster ride strains bond market functioning

An explosion of volatility in US Treasuries following the collapse of Silicon Valley Bank has provided the sternest test of a market that underpins much of the global financial system since a dramatic meltdown in the early stages of the Covid-19 pandemic.

But while the $22tn market for US government debt this week suffered its most volatile period since the global financial crisis a decade and a half ago, surpassing even levels seen in March 2020, investors and analysts said market functioning by and large held up.