For many, liquidity, market size and round-the-clock trading are as valuable as the return itself. Any disruption ​to Treasury market liquidity therefore could well be amplified by disturbing these players - sending potentially seismic ripples through a market that's a bedrock for global finance. Fed easing expectation kiboshedFor a start, implied volatility of the Treasury market - the three-month MOVE index - rocketed to its highest since last May. Yet trading volumes actually surged - and weekly activity in two-year "on-the-run" Treasuries, or new issues, was the highest since the tariff shock last April. Strains in the Treasury market bear very close watching.

Source: The Edge Markets March 26, 2026 13:14 UTC