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Benzinga
  • 3 hours ago
Global markets are seizing up as Iran war disruptions push volatility to crisis levels across stocks, bonds, oil, and gold. Morgan Stanley data shows 2-year Treasury spreads widened ~27% in March as liquidity in some markets fell to ~10% of normal, with hedge fund de-risking amplifying the moves.
Transcript
00:00It's Benzinga bringing Wall Street to Main Street.
00:02Global markets showed signs of stress as the war in Iran disrupted trading conditions and
00:07reduced liquidity across asset classes, according to Reuters. Investors and traders said they
00:12struggled to execute trades as market makers widened bid-ask spreads and reduced risk exposure.
00:18Volatility measures for stocks, bonds, oil, and gold rose to crisis-like levels,
00:23while spreads on two-year U.S. treasuries widened about 27 percent in March, according to Morgan Stanley.
00:30European regulators warned geopolitical tensions could drive higher energy prices,
00:35inflation, and weaker growth. Hedge funds accelerated volatility by unwinding similar positions,
00:41while liquidity in some markets fell to about 10 percent of normal levels.
00:45For all things money, visit Benzinga.com.
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