Bill Dudley, Columnist

Fixing the Bond Market Will Take More Than Repos

The Fed’s new facility is a good first step, but not enough.

July 29, 2021 at 11:58 AM UTC

Bill Dudley is a Bloomberg Opinion columnist. A former president of the Federal Reserve Bank of New York, he is a member of Coinbase Global's advisory council.

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The market for U.S. Treasury securities is a lynchpin of global finance, providing funds for the government, a safe place to park money and a benchmark for interest rates everywhere. Yet on too many recent occasions, this crucial market has malfunctioned, unnerving investors and casting doubt on the reliability of America’s financial system.

This week, the U.S. Federal Reserve took an important step toward fixing the problem. This is good news, but more must be done.