Just after a day when President Trump dashed the hopes for continuing QE till election, the Equity and Bond markets saw volatility. The Bond Volatility index in particular went through the roof. The volatility had been so high only during 2008 (Oil & Emerging markets Crash), during 2000 (Tech Bubble Bust) and during 1989 (Japan’s crash).
According to a report, too many investment grade corporate bonds and junk bonds have been sold since the Fed manipulated the bond “markets” w PR guarantees instead of buying the bonds starting in March. Over $1.3 trillion total in new bonds issued since then and the cash flows have not come back.