It's hard to find safety right now in markets that are in disarray, but bond traders are certainly trying to do exactly that.
They're buying short-term debt that stands to lose when the Federal Reserve raises interest rates—but a hike next month isn't as much of a concern right now. And they're dumping risky junk bonds faster than their high-grade counterparts, sending the yield gap between the two to the widest in almost three years.
Traders are hunkering down, buying and selling less than average as they try to determine what's next for markets after more than US$5 trillion in global equity value was erased in less than two weeks.
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