If anything is in a bubble, it would seem as though US Treasuries are entering what could be a very punishing environment if/when economic forces revert back to what should have been the norm. Thus, any expectation of an orderly exit (of Treasury holders) could become overly crowded . . . resulting in US Treasuries being abnormally discounted or frozen from being cashed out when the Treasury holder desires.
Plan B Economics
While I think it would be very difficult to freeze the UST market, I agree any panic selling would result in a big rise in yields. My question is…when do the macro conditions occur to support panic selling?
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