Enhancing liquidity of the U.S. Treasury market under stress

[author-bio] Liquidity in U.S. bond markets evaporated in March 2020 as the economic and financial implications of COVID-19 became apparent. Large and widespread selling of bonds by nonbank financial institutions, foreign central banks, and many others overwhelmed the supply of liquidity by the securities dealers that act as bond market intermediaries. The Federal Reserve took … Continue reading Enhancing liquidity of the U.S. Treasury market under stress