Analysis: Traders ready for wilder swings as rate rises stoke volatility By Reuters

LONDON/NEW YORK (Reuters) – Traders in the world’s largest markets are having to navigate wild intra-day swings and shrinking deal sizes as central banks rapidly withdraw stimulus measures, in a small-scale reminder of a pandemic-driven financial seize-up just two years ago.

The U.S. Federal Reserve said in a report this week that liquidity had “deteriorated” further than what might be expected at current levels of volatility, with noticeably poor conditions in treasury, commodity and equity markets.