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All in all, not a panacea for Treasury liquidity

All-to-all trading in U.S. Treasuries – seen by many as a likely consequence of an impending clearing mandate – is not a panacea for liquidity and could even lead to a greater discrepancy between current and non-current instruments. Market participants have warned.

The Securities and Exchange Commission is widely expected to adopt a new rule in the coming weeks that would subject large swaths of the U.S. Treasury market and Treasury repo transactions to central clearing. See market participants

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