T-Bill volatility a warning shot to investors, says JPMorgan head Jamie Dimon

NEW YORK: JPMorgan head Jamie Dimon said last year’s volatility in US Treasuries is a “warning shot” to investors and that the next financial crisis could be exacerbated by a shortage of the securities.

The October 15 gyration, when Treasury yields fluctuated by almost 0.4 percentage point, was an “unprecedented move” that would have serious consequences in a stressed environment, Dimon, the New York-based bank’s chairman and chief executive officer, said in a letter Wednesday to shareholders.

Treasuries are supposed to be among the most stable securities. Dimon, 59, cited the incident as he waded into a debate about whether bank regulations implemented after the 2008 financial crisis exacerbate price declines by limiting the ability of Wall Street banks to make markets. It’s just a matter of time until some political, economic or market event triggers another financial crisis, he said, without predicting one is imminent.