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Stacks of $1 dollar notes bearing the name of U.S. Treasury Secretary Steven Mnuchin move through a machine at the U.S. Bureau of Engraving and Printing in Washington, D.C., U.S., on Wednesday, Nov. 15, 2017Photographer: Andrew Harrer/Bloomberg

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By Anchalee Worrachate and Liz Capo McCormick

April 22, 2020 at 3:02 PM UTC

This article is for subscribers only.

The swift arrival of the Federal Reserve on the scene as the dealer of last resort stopped a spiral in the Treasury market from turning systemic in March.

The question now is whether a gradual retreat by the central bank would create inviting conditions for the return of leveraged strategies that helped tip coronavirus-ravaged markets into chaos.