Barclays Predicts Growing Treasury Market Will Need Bailouts

(Bloomberg) -- The Treasury market has been rendered structurally unstable by its explosive growth and is likely to require occasional “official interventions” to support its functioning, according to strategists at Barclays. The $31 trillion US government debt market “has grown far faster than the quantum of bank capital,” creating a gap between the supply and demand for liquidity that reverses a decades-long trend and is “the underlying force driving market fragility,” according to a March 30 report by ...

Barclays Predicts Growing Treasury Market Will Need Bailouts - Reportify