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Free fall in 10-year Treasuries stuns market

Possible cause ranges from sheer demand to computerisation of trades to new regulations.

Algorithms across Wall Street may sometimes overreact in unison to the information they are taking in - and then take prices to irrational levels.

DURING the turmoil in global markets on Wednesday last week, something happened that bond traders will not soon forget.

Soon after 9am, the yield on one of the world's most-traded bonds, the 10-year Treasury, went into a bizarre free fall. This particular Treasury note is tracked