From Foundations to Fault Lines — Part III

Seemingly Stable, Systemically Stressed

Earlier in this series:

• Part I: Cracks in the Foundations

• Part II: Collateral Fragility

• Part III: Seemingly Stable, Systemically Stressed

Over the past year the U.S. Treasury market has presented a curious dichotomy. On the surface the plumbing—funding markets, bill auctions and short‑term instruments—has been placid. Bills trade rich to overnight funding, …