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The Treasury Market’s Fragile Calm: Why the Next Liquidity Crisis Could Be Structural, Not Episodic
The world’s most important securities market has rarely looked more liquid. Data published this week by the Federal Reserve Bank of New York shows that Treasury market liquidity, measured across bid-ask spreads, order book depth, and price impact, improved steadily through early 2026 and by February reached its best condition since 2021 (Dyer and Fleming,…