The US Treasuries market is a dangerous place to dream

Financial Times/ Gillian Tett/11-18-2021

photograph of $100 bills and an hour glass“The question I am referring to is whether the US Treasuries market is robust enough to handle the shocks that might arise from those first two problems. For while the US government bond market used to be considered to be the world’s most liquid and deep asset class, in March 2020 that cosy assumption was smashed apart.”

USAGOLD note: Those first two problems have to do with exiting quantitative easing and whether or not we will be getting a new Fed chairman at the turn of the year. The latter problem was settled yesterday with the reappointment of Jerome Powell, but not the question of how the markets will receive it. Tett goes to the heart of the matter at the link above – an important read. It is surprising how the bulk of financial media tries to avoid the very fundamental questions she raises.

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