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The Federal Reserve Building stands in Washington April 3, 2012.
The Federal Reserve Building stands in Washington April 3, 2012.
(Joshua Roberts/Reuters)

FINANCIAL TIMES

Scariest thing in U.S. bond markets? Interest rate stability

Lex is a premium daily commentary service from the Financial Times. It helps readers make better investment decisions by highlighting key emerging risks and opportunities.

The scariest thing in the bond markets is no longer the stability of banks, but the stability of interest rates because of the possibility that the Federal Reserve will slow its bond purchases. It is not too surprising, then, that markets have shrugged at the latest suggestion that bonds of systemically important banks may not carry an implicit government guarantee.