Steven Van Metre: Something Major Just Broke in the $38 Trillion US Treasury Market

The global financial system is facing a critical juncture, with a recent event highlighting the fragility of the current economic landscape. In a shocking revelation, the largest delivery failure of the US 10-year Treasury note in eight years has occurred, with a staggering $30.5 billion worth of trades failing to settle. This incident is more than just a minor glitch; it signals a severe shortage of the world’s safest asset, exposing a deeper liquidity crisis that threatens to destabilize the entire financial system. While many attribute the current shortage to the Federal Reserve’s quantitative tightening (QT) policies, the issue runs…