The Sunday Times on the UK has an article up saying that at this week's Bank of England's financial policy committee (FPC) meeting on Wednesday Mark Carney will warn of a liquidity problems in bond markets.
- The results of a 6-month investigation into bond markets will be discussed at the meeting
- Concerns of reduced market making in the bond markets
Concerns are that bond market players are underestimating the risks and that an interest hike could precipitate a sharp fall in bond prices ... and by 'sharp fall' some would go further and say 'collapse' or 'crash'.
more to come
