Tariff Turmoil and the Money Markets: Single Payer Insurance to the Rescue

In Treasury markets, there are no libertarians, only grateful recipients of single-payer insurance for ailing financial markets.
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FEDS Paper: Market Liquidity in Treasury Futures Market During March 2020

Eleni Gousgounis, Scott Mixon, Tugkan Tuzun, and Clara VegaWe study the behavior of liquidity providers and liquidity consumers in the 10-year U.S. Treasury futures market during the height of the COVID-19 shock in March 2020, a period of market turmoil when demand for liquidity was high. In March 2020, PTFs reduced their volume of liquidity providing trades as a share of total trading volume.

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