Revisiting the "Century Crash" of U.S. Treasuries in 2020
In 2020, the pandemic impacted the U.S. market, causing U.S. Treasuries to temporarily lose liquidity, and even money market funds faced a crisis, ultimately forcing the Federal Reserve to step in and buy bonds. Initially, this was triggered by emerging markets selling U.S. Treasuries for self-preservation, followed by a trillion-dollar basis trade collapse among hedge funds
In 2020, the pandemic impacted the U.S. market, causing U.S. Treasuries to temporarily lose liquidity, and even money market funds faced a crisis, ultimately forcing the Federal Reserve to step in and buy bonds.
Initially, this was triggered by emerging markets selling U.S. Treasuries for self-protection, followed by a trillion-dollar basis trade collapse among hedge funds.
