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Piecing together the October 15 puzzle

Huge US Treasury swing was result of hedge funds crowding into a few shared bets - on oil, pharma merger, Fannie and Freddie shares

duncan-wood

On October 15, the yield on the 10-year US Treasury bond fell 34 basis points in a matter of hours before rebounding, taking a huge, V-shaped bite out of the day's yield chart. Nothing like it had happened since the collapse of Lehman Brothers in 2008 and, before that, there were whole decades in which a 10bp intraday move would have been fairly dramatic.

The worrying thing was that it occurred in the absence of a Lehman-like cataclysm, or anything else that would obviously cause the world's

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