US Treasury seeks ways to improve liquidity

A regular survey ahead of the quarterly refunding announcements was used by the US Treasury Department in order to ask major banks whether the government should buy back government bonds to improve the market liquidity.

“The Treasury is also querying whether reduced volatility in the issuance of Treasury bills as a result of buybacks made for cash and maturity management purposes could be a meaningful benefit for Treasury or investors,” Reuters further noted.

Safe-haven flows continue to dominate the financial markets in the last session ahead of the weekend. As of writing, the S&P 500 Index was down 1.9% on a daily basis at 3,600 points.