Investors are bracing for a flood of more than $1 trillion of Treasury bills in the wake of the debt-ceiling fight, potentially sparking a new bout of volatility in financial markets. Many remember how money-market rates skyrocketed in 2019 during a period of low liquidity, necessitating intervention by the Federal Reserve. “When you dump a tremendous amount of debt into the market, it causes dislocation,” said Jon Maier, chief investment officer of Global X, an exchange-traded fund provider.
Read More : Threat of $1 Trillion Debt Deluge from Treasury Puts Market Stability in Jeopardy