Push To Exempt Treasuries From Liquidity Ratio Is Boon For Bond Rally

Authored by Simon White, Bloomberg macro strategist,

The recent bond rally might be receiving support from a growing push to carve out Treasuries from a bank liquidity measure required by regulators.

Something has changed in the last day or so in the Treasury market. Yields had been reluctant to drop too far, despite softer than expected CPI on Tuesday.