Save time by listening to our audio articles as you multitaskSo why do they sometimes not change hands? Several times in the recent past the market has broken down. In 2014 a “flash rally” led to wild swings in prices, for no clear reason. In 2019 rates spiked in the “repo” market, in which Treasuries can be swapped for cash overnight. In March 2020 extreme illiquidity led yields to spike, even though in times of panic they usually fall as investors rush to safe assets.
The fixes fall into three buckets: let the banks trade more bonds with investors, let investors trade more bonds with each other, or let investors trade or swap more bonds with the Federal Reserve. A final fix would be to let investors do more with the Fed. Last year the central bank created a standing repo facility, which allows a Treasury to be swapped overnight for cash. But the facility is only for primary dealers, which do not always pass on the liquidity. Opening it to more participants would address this problem.
, how about standing up for standards: where's the apostrophe? Cc:economist
Et tu Economist? Where's the apostrophe?
This Treason American?
Secure could have been Gov employment. Moving War Activity Find & cleanup was moved to Police only, we survived so please find evidence & report. Politics to blame, did you do this that by outsiders. Not outsiders if attacked & still live here. oh.
Too late …