Less broken markets via IFR news

GRAPHIC: Fed – Less broken markets, liquidity/depth issues remain
Mar 24 2020 10:07 by Divyang Shah
The bid/offer yield spread on the CTD for TYM0 (Chart 1) and USM0 (Chart 2) contracts as well as the difference between NAV/price of two major Treasury ETFs (BND & AGG; Chart 3) suggest that the bond markets are less broken. The massive intervention from the Fed via QE has certainly helped but despite this effort we have not seen a reversion to ‘normal’ as further healing is still required. There are still issues with market liquidity/depth and it may take a lot more than just the Fed opening up its balance sheet for normality to return. However, these early signs of a less broken market are positive. Chart 1: Chart 2: Chart 3: (Reporting by Divyang Shah) ((divyang.shah@thomsonreuters.com;)) TYM0 BIDOFFER : https://tmsnrt.rs/2vfRdnc USMO BIDOFFER : https://tmsnrt.rs/2TNN43q PRICE VS NAV : https://tmsnrt.rs/33r2Ft3

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.