(Bloomberg) -- The surge in government bond yields around the world to the highest this year isn't just because of signs of economic improvement. A lack of liquidity is amplifying the move.

The average yield on sovereign securities climbed to 1.34% Tuesday, the highest since Dec. 26, based on Bank of America Merrill Lynch indexes. The securities have lost 2% this quarter after accounting for interest payments. As yields rise, price swings have been exacerbated as major Wall Street firms have reduced their market making role. In the U.S. a measure of volatility rose Tuesday to the highest level in two weeks.

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