The day government bond trading stopped being boring

Forty-eight hours of carnage in the market has led to long-term changes for the sector

Government bond trading used to be dull. Unlike their cousins in the equities or credit markets, where large swings in prices are the norm, government bond traders traditionally operated in a world of low volatility, where changes in fractions of percentage points were considered a big deal.

The treasury bond trading scandal of the 1990s and the Russian default in 1998 were two of the few crises to rock these markets.

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