Treasury Market Shows Resilience Despite Challenges of 2022
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The $26 trillion Treasury market has shown resilience this year despite volatility in stocks and bonds, high debt issuance, and the Fed's balance sheet reduction.
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The supply of Treasury bills has seen its second largest dollar increase in history, yet indicators of stress remained within historical ranges.
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The 10-year and 30-year Treasury yields briefly reached 16-year highs, but the market kept functioning.
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The transition away from LIBOR has been nearly completed, removing a potential source of instability.
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Regulators aim to enhance reporting, transparency, and disclosures to further strengthen the Treasury market.