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Goldman Sachs: Low Liquidity Expected To Persist

US TSYS

Goldman Sachs note that “in contrast to the normalisation in funding spreads we expect over the next few months, we continue to expect Treasury market functioning to remain somewhat challenged, with depth at or near the post-Covid shock lows across the curve amid extremely high delivered volatility. In the absence of the Fed’s “backstop” presence, we believe it may take time and greater certainty in the geopolitical outlook for liquidity to materially improve, suggesting ongoing risk of somewhat disorderly yield swings.”

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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