A Study on the Evolution and Driving Factors of US Treasury Bond Market Liquidity

As the largest and most liquid sovereign debt market in the world, the liquidity of the US Treasury bond market has an important impact on the global financial market.Since 2008, the resilience of the U.S. Treasury market has shown a downward trend, at the same time that liquidity risks have gradually become prominent,in particular, due to external shocks such as the COVID-19 pandemic, market liquidity has experienced significant fluctuations. This paper deeply analyzes the primary and secondary markets of U.S. Treasury bonds, explores the key factors affecting the liquidity of these two markets, and assesses the current liquidity situation through market indicators. On this basis, this paper predicts the possible direction of market liquidity in the coming period of time, and summarizes the reform proposals put forward by major industry institutions to improve market liquidity.The purpose of this paper is to explore the changing trend of the liquidity of the US Treasury bond market, analyze the main influencing factors behind it, and summarize the current market state and possible development trend in the future.