ANALYSIS: Fall in US and UK bond markets may reflect forced selling by hedge funds

The rise in US and UK bond yields may be partly due to hedge funds' need for liquidity after a sharp fall in share prices earlier in the week, Elmar Volker, senior fixed income analyst at LBBW, said in a report on 11 April. ‘Hedge funds have been forced to sell as equity prices have fallen sharply, which provides another explanation for the weakness in the US and UK bond markets.’