US Treasury asks major banks if it should buy back U.S. government bonds
The U.S. Treasury Department is asking primary dealers of U.S. Treasuries whether the government should buy back some U.S. government bonds to improve liquidity in the $24 trillion market.
Investors are worried about rising volatility in bonds as the Federal Reserve rapidly raises interest rates to bring down inflation.
The Treasury market has swelled from $5 trillion in 2007 and $17 trillion in early 2020, while banks are facing more regulatory constraints that they say make it more difficult to intermediate trades.
