US government bond investors are urging the Treasury department to intervene in the market, hoping for signals this week of possible buybacks after months of wild prices swings and poor liquidity.
The Federal Reserve’s aggressive increases in interest rates and quantitative tightening programme this year have amplified the drama in the normally staid $24tn Treasury market. Investors want the Treasury to provide clues of its plans when it makes its fourth-quarter funding announcement in the coming days.
Treasury yields, which determine the US government’s borrowing costs and are used as benchmarks for prices across asset classes, have gyrated wildly in 2022. The volatility has made it harder and more expensive for investors to buy or sell Treasury bonds in a market that is ostensibly the most liquid in the world.