Accurately measuring the effect of trading on prices, perhaps the most fundamental gauge of market liquidity, can be quite difficult in such an environment.7 There are also differences between on-the-run Treasury securities, the securities that were most recently issued and that are the most liquid, and offthe-run Treasury securities.
Therefore, I would like to take this opportunity to share some thoughts that, from my perspective as a central banker, I consider fundamental to understanding where we are and how we can contribute to making this goal possible in a sustainable way.