Treasuries Liquidity Problem Exposes Fed to ‘Biggest Nightmare’ The latest bout of global financial volatility has heightened concerns about regulators’ continuing failure to resolve liquidity problems with US Treasuries, that serves as a benchmark

(Bloomberg) — The latest bout of global financial volatility has heightened concerns about regulators’ continuing failure to resolve liquidity problems with US Treasuries — the debt that serves as a benchmark for the world.

It’s getting harder and harder to buy and sell Treasuries in large quantities without those trades moving the market. Market depth, as the measure is known, last Thursday hit the worst level since the throes of the Covid-19 crisis in the spring of 2020, when the Federal Reserve was forced into massive intervention.

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With rising risks of a global recession, escalating geopolitical tensions and the potential for further defaults by developing nations — not to mention ructions in a developed economy such as the UK — investors may not be able to rely on Treasuries as the reliable haven they once were.

finance.yahoo.com/news/us-treasuries-liquidity-problem-exposes-100000072.html

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