"Even before recent geopolitical frictions, there were signs of strains in the smooth functionality in the Treasuries market.""Even before recent geopolitical frictions, there were signs of strains in the smooth functionality in the Treasuries market."

Not enough space on the banks' balance sheets! Sept 2019 called and wants its crisis back

The announcement late last year that the Federal Reserve will be buying $40bn of short-term Treasuries every month to prop up bank reserves offers the clearest sign yet there are concerns over serious systemic fragility from the demands being placed on the large banks that deal in such bonds.

oops:

"if primary dealers do not have the balance sheets to make markets for Treasuries, who besides the Fed is left to hold the bag when things go wrong?""if primary dealers do not have the balance sheets to make markets for Treasuries, who besides the Fed is left to hold the bag when things go wrong?"

Ballsy, Larry-Lepard style quote in the FT!

Not sure what to make of this graph, but looks.... relentless?

among solutions suggested the problems include a new kind of digital security, the Perpetual Overnight Rate Treasury Securities (Ports) designed to be issued daily at auctions with settlement on a blockchain.

oh no, dude, no. Just NOOOE!

The crisis facing the Treasury market is not going away. If anything, it will get worse. The Big Beautiful Bill allows the Treasury to borrow up to $5tn, meaning primary dealers can expect a deluge of incoming debt.

can't get archive to work... soz, peeps. Gotta trust me on the quotes.