Not only is it not difficult to separate rational market movements from irrational ones at high frequency, such proclamations are a sign that those betting on government bonds while chatting such are clueless about the drivers of market movements. Isn’t that a good time for the bank senior management to rein in their Treasury portfolio risks?
None of this is rocket science but does require at the highest level of bank governance mechanisms a recognition of interest rate risk, an incentive to manage it, and a top-down organizational strategy to implement it. Measures that address the duration risk of banks How may banks better manage their duration risk?