Falling US Treasury liquidity: what do securities lending rates show? (Premium)
This month, the US Treasury solicited input from market participants on what needs to be done to fix the growing imbalance in price spreads between older and newer treasury issues. We have been watching this for some time now to see how these kinds of imbalances would play out. What do securities finance markets have to say about the odd state of government bond markets, as reflected in our “prices”: rates on fixed income financing positions?