Benefiting from the wild moves in equities, the yield on US 10-year Treasuries was 2 basis points tighter at 2.78 per cent according to NAB, and the yield on 2-year Treasuries was 5 basis points tighter at 2.57 per cent.

The Australian currency is often framed as a risk proxy, meaning it tends to weaken with market risk appetite. Credit spreads widening have also given rise to concerns about the health of low quality corporate borrowers.

More than $US500 billion ($710 billion) of investment grade credit faces refunding requirements in 2019, according to Jamieson Coote Bonds, and half of all US investment grade debt is rated one notch above junk, making it vulnerable to rating downgrades.

At the ECB’s final meeting of the year, held December 13, it elected to end its monetary stimulus program as widely expected at the time.

Trader Jonathan Mueller on the floor of the New York Stock Exchange on Thursday, when stocks again experienced massive volatility.  RICHARD DREW

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