Bloomberg’s index of Treasury market liquidity indicates that trading conditions are worse than at the nadir of the March 2020 shitshow. But the NY Fed argues that liquidity is fine. Who is right, and what does the discrepancy signify? Free to read 👇 https://t.co/taUcac53SR
🔵 US BOND ETF LAUNCHES UP 50% FROM YEAR-AGO LEVELS Full Story → https://t.co/NSjgnpJ70A (Reuters) - Launches of bond-focused exchange traded funds have nearly doubled over year-ago levels in 2024, boosted by expectations of interest rate cuts by the Federal Reserve,… https://t.co/2aljqxbJWn
Treasury market liquidity: fine but fragile? https://t.co/rbwbQgg7FS

Liquidity in the $27 trillion U.S. Treasury market has returned to pre-Federal Reserve tightening levels, according to the New York Federal Reserve. This improvement in liquidity comes despite some measures indicating that trading conditions remain fragile, with Bloomberg’s index showing conditions worse than at the nadir of March 2020. Additionally, launches of bond-focused exchange traded funds (ETFs) have surged by 50% from year-ago levels in 2024, driven by expectations of interest rate cuts by the Federal Reserve, as reported by Reuters.





