Bond traders express concern over liquidity in the US bond market due to increased debt issuance and Fed rate hikes.
Bond traders express concern over deteriorating liquidity in the US bond market as the Treasury issues more debt for deficit spending. Market size growth and Fed's rate hikes exacerbate the issue, raising concerns of liquidity vulnerabilities similar to the 2020 pandemic-induced crisis. Regulators and Treasury are implementing reforms to improve trading conditions but worries persist.
June 14, 2024
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