Skip to content

Barclays Sees Treasury Liquidity Ripples as the Fed Beats Retreat

  • Dislocations on the rise in front-end Treasuries, Barclays say
  • Yet Fed repo facilities seen a cushion against liquidity shock

Barclays Plc’s strategists see some ripples in an otherwise smooth-functioning Treasury market as the Federal Reserve slows its bond-buying spree. 

With the central bank reducing its purchases as it moves closer toward raising interest rates, analysts Anshul Pradhan and Andres Mok said in a research note that there are signs of some rising dislocations in the Treasury market.