U.S. Treasury market faces structural issues even as liquidity improves

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(Reuters) – The recent liquidity crisis in the $17 trillion U.S. Treasury market has exposed structural problems that are unlikely to be fixed any time soon, which could lead to new bouts of volatility and make it more costly for the U.S. government to sell bonds.

FILE PHOTO: A packet of former U.S. President Abraham Lincoln five-dollar bill currency is inspected at the Bureau of Engraving and Printing in Washington March 26, 2015. REUTERS/Gary Cameron/File Photo

The bond market all but broke down in March as businesses shut to stop the spread of the new coronavirus, stoking fears about an

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