Fed Worried about Bond Market Sell-Off

A recent report by the United States Federal Reserve suggested that American monetary policymakers remain concerned about the bond sell off last February, which led to a surge in Treasury yields, Reuters reported.

Developments highlighted the importance of continued focus on Treasury market resilience, according to the Fed’s semi-annual Financial Stability Report.

“Market depth overall rebounded in subsequent weeks; however, for short- and medium-dated securities, the recovery was uneven and slower on net.”

The report also pointed to the challenges in the money market, as well as mutual and hedge funds.