Bond Market Turbulence Tests Liquidity Amid Tariff Shifts
While equity markets dominate headlines with the S&P 500 nearing its worst decline since the pandemic, institutional investors are laser-focused on liquidity metrics. Market depth and resilience remain the true stress tests as U.S. trade policy rewrites global commerce rules.
Tradeweb data reveals liquidity has held firm despite tariff volatility—a critical buffer against systemic risk. ’Stocks fluctuate, but evaporating liquidity creates existential threats,’ notes Bhas Nalabothula, highlighting the bond market’s role as a financial shock absorber.