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The markets have lost their bearings

THE Move index, which measures the volatility of the US Treasuries markets, has reached its highest level since 2008. Having entered a phase of structural transition after years of anaesthesia due to the interventionist policies of central banks, the markets seem to have lost their bearings.

In fact, the period of administered rate markets has come to an end. Faced with a succession of crises starting in 2008, ultra-accommodating monetary policies combined with expansionary fiscal policies ensured a quasi-monetisation of public debt. Central banks, through clear forward guidance, gave investors visibility on their asset purchase programmes and on their intention to keep interest rates at very...

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