Liberty Street Economics
Liberty Street Economics
Return to Liberty Street Economics Home Page

3 posts on "Treasury security"
September 8, 2022

How Can Safe Asset Markets Be Fragile?

Thomas Eisenbach and Gregory Phelan

Photo: carton on eggs with one egg cracked

The market for U.S. Treasury securities experienced extreme stress in March 2020, when prices dropped precipitously (yields spiked) over a period of about two weeks. This was highly unusual, as Treasury prices typically increase during times of stress. Using a theoretical model, we show that markets for safe assets can be fragile due to strategic interactions among investors who hold Treasury securities for their liquidity characteristics. Worried about having to sell at potentially worse prices in the future, such investors may sell preemptively, leading to self-fulfilling “market runs” that are similar to traditional bank runs in some respects.

Continue reading »
Posted at 7:00 am in Federal Reserve, Financial Markets, Liquidity, Treasury | Permalink
July 1, 2020

How Liquid Is the New 20-Year Treasury Bond?

Michael Fleming and Francisco Ruela

Fleming and Ruela take a first look at the U.S. government’s new 20-year bond, using a short sample of available data to describe its trading activity and liquidity.

Continue reading »
Posted at 7:00 am in Dealers, Financial Markets, Pandemic, Treasury | Permalink
September 19, 2014

Measuring Settlement Fails

Michael J. Fleming, Frank M. Keane, Antoine Martin, and Michael McMorrow

n June 2014, settlement fails of U.S. Treasury securities reached their highest level since the implementation of the Treasury fails charge in May 2009, attracting significant attention from market participants.

Continue reading »
Posted at 7:00 am in Financial Institutions, Financial Markets | Permalink | Comments (4)

RSS RSS Feed

Twitter Follow Liberty Street Economics

About the Blog

Liberty Street Economics features insight and analysis from New York Fed economists working at the intersection of research and policy. Launched in 2011, the blog takes its name from the Bank’s headquarters at 33 Liberty Street in Manhattan’s Financial District.

The editors are Michael Fleming, Andrew Haughwout, Thomas Klitgaard, and Asani Sarkar, all economists in the Bank’s Research Group.

Liberty Street Economics does not publish new posts during the blackout periods surrounding Federal Open Market Committee meetings.

The views expressed are those of the authors, and do not necessarily reflect the position of the New York Fed or the Federal Reserve System.

Economic Research Tracker

Liberty Street Economics is now available on the iPhone® and iPad® and can be customized by economic research topic or economist.

Economic Inequality

image of inequality icons for the Economic Inequality: A Research Series

This ongoing Liberty Street Economics series analyzes disparities in economic and policy outcomes by race, gender, age, region, income, and other factors.

View by Topic

Most Viewed

  1. Fight the Pandemic, Save the Economy: Lessons from the 1918 Flu
  2. A New Barometer of Global Supply Chain Pressures
  3. Everything You Wanted to Know about the Tri-Party Repo Market, but Didn't Know to Ask
  4. Monitoring Real Activity in Real Time: The Weekly Economic Index
  5. Who Are the Federal Student Loan Borrowers and Who Benefits from Forgiveness?

Last 12 Months

  1. Who Are the Federal Student Loan Borrowers and Who Benefits from Forgiveness?
  2. The New York Fed DSGE Model Forecast—June 2022
  3. Global Supply Chain Pressure Index: May 2022 Update
  4. How Much Did Supply Constraints Boost U.S. Inflation?
  5. Understanding the “Inconvenience” of U.S. Treasury Bonds
Useful Links
Comment Guidelines

We encourage your comments and queries on our posts and will publish them (below the post) subject to the following guidelines:

Please be brief: Comments are limited to 1500 characters.

Please be quick: Comments submitted after COB on Friday will not be published until Monday morning.

Please be aware: Comments submitted shortly before or during the FOMC blackout may not be published until after the blackout.

Please be on-topic and patient: Comments are moderated and will not appear until they have been reviewed to ensure that they are substantive and clearly related to the topic of the post. We reserve the right not to post any comment, and will not post comments that are abusive, harassing, obscene, or commercial in nature. No notice will be given regarding whether a submission will or will not be posted.‎

Send Us Feedback

Disclosure Policy

The LSE editors ask authors submitting a post to the blog to confirm that they have no conflicts of interest as defined by the American Economic Association in its Disclosure Policy. If an author has sources of financial support or other interests that could be perceived as influencing the research presented in the post, we disclose that fact in a statement prepared by the author and appended to the author information at the end of the post. If the author has no such interests to disclose, no statement is provided. Note, however, that we do indicate in all cases if a data vendor or other party has a right to review a post.

Archives