, Columnist
Three Things to Prevent a Treasury Market Meltdown
US government debt should be a haven, not a source of instability.
Be prepared.
Photographer: Scott Olson/Getty ImagesThis article is for subscribers only.
The market for US Treasury securities is arguably the world’s most important: a haven for investors in turbulent times, and a benchmark for virtually all other assets. Yet it’s facing increasing strains, as the government’s unsustainable borrowing and the Federal Reserve’s quantitative tightening flood it with trillions of dollars of debt.
To ensure the Treasury market doesn’t become a source of instability, US authorities need to make some adjustments. Quickly.