Liquidity in the $27 trillion U.S. Treasury market, the largest government bond market in the world, is back to levels seen before the Federal Reserve...
FILE PHOTO: The seal of the U.S. Securities and Exchange Commission is seen at their headquarters in Washington, D.C.NEW YORK - Liquidity in the $27 trillion U.S. Treasury market, the largest government bond market in the world, is back to levels seen before the Federal Reserve started hiking interest rates in 2022, according to a New York Fed report.
Fleming observed improvements in the bid-ask spread, which is the difference between the highest bid price and the lowest ask price for a security. Spreads have been narrow and stable since mid-2023, after widening in the aftermath of the U.S. regional banking turmoil in March last year, he said. Regulators and the Treasury itself have in recent years launched a slate of reforms to improve trading conditions and avoid disruptions in the world's biggest bond market. Still, many market participants remain concerned that vulnerabilities that emerged in previous incidents, such as in March 2020 when liquidity rapidly deteriorated amid pandemic fears, could still reappear in case of spikes in volatility and as government debt supply continues to grow.
"Close monitoring of Treasury market liquidity, and continued efforts to improve the market’s resilience, remain appropriate."Liam Neeson has become one of Hollywood's most reliable action men in recent years. He has made dozens of gritty thrillers, from The Commuter and Taken to Widows.Energy group Edison said on Monday it would add fiber broadband services to its retail offer as Italian utilities vie for customers.
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