Joshua Younger on the Treasury Market: Structure, Stressors, and Potential Reforms
Macro Musings with David Beckworth
00:00
The Structure of the US Treasury Market
The Treasury market is broken down into cash, repo and futures markets. Futures are a form of leverage on treasury yields with swaps like total return swaps. The end users buy treasuries in part because they expect to have liquidity. This is a high quality, liquid asset. And that secondary market relies on leverage.
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