Record Volatility in Europe Rates Has Traders Battling Algos

European rates markets are set for the most volatile month on record, sparking chatter over the role robot traders are playing in exacerbating wild swings during the Middle East conflict.

Euro two-year interest-rate swaps — used to bet on the outlook for central bank policy — have seen historic volatility in March, while for UK contracts it’s been the choppiest month since the selloff that led to the ousting of former prime minister Liz Truss in 2022.