Analysts and traders blame a technical error for the recent plunges in US Treasury interest rates, that of negative convexity (or convexity hedging). The result can be a market distortion that has...

Analysts and traders blame a technical error for the recent plunges in US Treasury interest rates, that of negative convexity (or convexity hedging). The result can be a market distortion that has people jumping to the wrong conclusion about the likelihood of a recession.