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Liquidity in the market — one crucial measure of how well it is functioning — is at its worst levels since March 2020 after a dramatic decline in the past year. Market depth, a measure of liquidity which refers to the ability of a trader to buy or sell Treasuries without moving prices, is also at its worst level since March 2020, according to Jay Barry at JPMorgan.
“Markets are in a much more fragile place, with terrible liquidity,” says Greg Peters, co-chief investment officer at PGIM Fixed Income. “The way I think about fragile market function is that the odds of a financial accident are just higher.”
https://www.ft.com/content/632411eb-c3fa-4351-a3b6-b0e30bdc0ef7
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