Treasury Market Faces Mounting Risks as Debt Soars and Electronic Trading Transforms Old Structure

Ray Dalio warns the U.S. is facing a debt crisis as national debt grows and more budget goes toward interest payments.

Regulators like Janet Yellen aim to reform the Treasury market structure to make it more resilient, but changes may not be coming fast enough.

The Treasury market stopped functioning during the March 2020 COVID panic as dealers disappeared.

Growth of electronic trading and algorithms have transformed the traditionally bank-dominated Treasury market.

Deficit reduction that could ease strains on the Treasury market looks unlikely with a divided Congress.