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Behind the Money

A radical change for the US Treasury market

Behind the Money

Topher Forhecz

Markets, Investing, News, Banking, Finance, Business, Business News, Crypto

4.4350 Ratings

🗓️ 27 March 2024

⏱️ 17 minutes

🧾️ Download transcript

Summary

The past several years in the US Treasury market have not been what you’d call smooth sailing. Three crises in a decade recently pushed regulators to introduce important changes to the world’s largest and most liquid market. The Securities and Exchange Commission passed the most significant reform a few months ago. The FT’s capital markets correspondent Kate Duguid examines that change — plus the potential pitfalls and promise that come with it. 


Clips from CNBC, Bloomberg

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For further reading:

The radical changes coming to the world’s biggest bond market

Has Gensler’s SEC pushed Wall Street too far?

SEC tussles with shadow trades in the US Treasury market

Ransomware attack on ICBC disrupts trades in US Treasury market

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On X, follow Kate Duguid (@kateduguid) and Michela Tindera (@mtindera07), or follow Michela on LinkedIn for updates about the show and more. 


Read a transcript of this episode on FT.com



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Transcript

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AI and take action today. Think about the last time you were at the beach on a warm summer day. Sitting on the sand you look out at the ocean and it's blue as far as

0:48.6

the eye can see, massive. And it's one of those days where the water looks tranquil, inviting, and calm.

1:00.0

Now the F.T.'s capital markets correspondent, Kate Dugood, tells me that the way I'm describing

1:05.2

the ocean is sort of also how you can think about the U.S. Treasury's market.

1:11.8

The Treasury market is the biggest and most liquid market in the world.

1:17.4

And like the ocean's waters, the influence of the market for U.S. government debt is spread around the world.

1:26.1

They're also held by nearly every investor on earth.

1:30.3

They're held by foreign central banks, by foreign governments, and the market is also the way

1:35.2

that the Federal Reserve executes monetary policy.

1:39.2

But under certain circumstances, if something goes wrong, those calm waters can quickly turn into a storm.

...

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