Treasury Market Glitches Out As Liquidity Disappears; Fed Funds, SOFR Futures Halted

15 March 2023

Last night, we shared with readers the latest views by Goldman flows guru who raised many alarms, but most notably perhaps his observations that Treasury market liquidity has completely vaporized, to wit: “10 year bond futures DV01 liquidity is 19K. This is the lowest since March 23rd, 2020 (Covid times). At the start of March 2023, you could trade 114k DV01 on the screens, and today is 19K, a decline in 83% month-to-date.”

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