The Weekly Fix: Siren Song of Long Duration Is Getting Louder
Lorie Logan, president of the Federal Reserve Bank of Dallas, speaks on Monday, Oct. 9. She and other Fed officials have been delivering the same message: the bond market is doing the central bank’s heavy lifting.
Photographer: Nitashia Johnson/BloombergWelcome to the Weekly Fix, the fixed-income newsletter with asymmetric returns potential. I’m cross-asset reporter Katie Greifeld.
Thursday’s brutal bond selloff was a good reminder that Treasuries are a volatile place right now. All year, Wall Street pros have been sinking record sums of cash into the world’s largest Treasury ETF on a high-conviction bet that interest rates have peaked — and all year, they’ve been wrong.