BofA’s Shocking Warning: The Treasury Market Is No Longer Functioning Normally

• BofA’s Shocking Warning: The Treasury Market Is No Longer Functioning Normally
  by Tyler Durden, https://www.zerohedge.com/
  In a stunning report published this morning by BofA’s Marc Cabana, the rates strategist warns that the US Treasury market is no longer functioning properly, and will “likely requires a rapid & large near-term policy response from the US Treasury or Federal Reserve” to get back to normal. Prompting BoA’s stunning admission that the world’s most liquid market appears broken, was the unexpected plunge in Treasury futures which we discussed yesterday…
  –
  … with Cabana perplex by the 11bps surge in 30Y bond yield even as the S&P declined 5%: “In a risk off environment it would be expected to see UST yields decline; yields appear to have been overwhelmed by liquidity concerns yesterday.“
  –
  Of course, it’s not just yesterday’s late day puke: as we noted earlier, the funding market itself is starting to freeze up, with the FRA/OIS, i.e., bank dollar funding stress indicator, exploding to the highest since the financial crisis…
  –
  read more.

end