Financial Times FT.com

Wild swings in Treasuries may signal continued turmoil

By Krishna Guha and Saskia Scholtes

Published: August 23 2007 03:00 | Last updated: August 23 2007 03:00

Wild swings in prices of the safest and most liquid short-term US government securities this week have unnerved investors and suggested that there may be no swift end to the market turmoil.

Money markets yesterday extended Tuesday's dramatic sell-off of Treasury bills in a sharp reversal of a flight to quality that had not been seen since the "Black Monday" stock market crash of October 1987.

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