Bonds volatility is at 'pre-Asian crisis' levels

Although analysts point out the market is unlikely to see spreads widen to levels seen in 1997 and 1998 and there is no immenent threat of a collapse in the bonds market, closer asset class correlation between equities and bonds means there has been as much volatility in the bonds sector over the last two weeks on a daily basis as is seen in the equities market. More specifically, Chris Bowie, head of credit at Resolution Asset Management, says there has been more volatility in the last two weeks – since equity markets have reacted to the prospect of rising inflation and commodity stock f...