Investors stumped as consensus positions unwind in volatile markets

Managers and analysts have been left struggling to find answers as a number of 2015's crowded trades begin to unwind in increasingly dramatic fashion.

German ten-year bund volatility rose sharply last week, ringing alarm bells for investors just three weeks after yields on the sovereign debt had hit a record low of 0.06%. Wild moves last Thursday saw yields rise from 0.59% to 0.79% - and then back down to 0.6% - within a four-hour period, raising fresh concerns over bond market liquidity. Gilts and treasuries were also hit. Those trends have taken hold again at this week, with the pain again spilling over into equities. This morning, for example, the FTSE has dropped 1.8% to 6,903. That follows a sharp rise in benchmark US treasu...