Troy's Lyon: Markets are ceasing to function properly

Anna Fedorova
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The continued intervention of central banks in financial markets has stopped them from functioning in the normal manner, according to Troy's Sebastian Lyon.

The manager of the £2.4bn Trojan fund said the actions of central banks have caused bonds to see greater sell-offs than equities during the month of October. "Central bankers [have their hand] firmly on the tiller of the credit market through their bond buying," Lyon (pictured) said. "It was noteworthy that the most dramatic price action was not in traditionally volatile equities, but in the 10-year US Treasury note - a traditional rock of safety and stability." On 15 October, yields on 10-year treasuries fell from 2.2% to 1.86%, before returning to where they started in just a few...

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