I have been expecting this kind of shift to spread from the UK. But before we even get a crisis in the US? Inflation is still stuck fast above 5%. So, shouldn’t we expect to see poor Treasury liquidity as a consequence of rising yields and volatility?
Cross-posted from Zero Hedge.
Three weeks ago, when the topic of collapsing Treasury liquidity was only barely making the rounds, despite relentless coverage on this website which flagged lack of TSY liquidity as the most likely driver of a wholesale market crash, we quoted BofA’s iconic rates strategist Mark Cabana who warned that the ongoing liquidity collapse meant a “Treasury Market Breakdown Was At Risk.”
