As this is written from the TBTF perspective, it may very will be a crisis, for them. The Street does not like having its poker chips taken away. (US Treasuries are the currency of traders, not cash, because of their max marginability as a % of notional (face) value vs other securities.)
"The next financial crisis may already be brewing — but not where investors might expect"
Last Updated: Sept. 15, 2022 at 8:26 a.m. ET
First Published: Sept. 14, 2022 at 11:56 a.m. ET
By Joseph Adinolfi
As the Fed prepares to kick its balance-sheet runoff into high gear, some on Wall Street are worried that thinning Treasury-market liquidity could create a perfect storm.
A growing number of traders, academics, and bond-market gurus are worried that the $24 trillion market for U.S. Treasury debt could be headed for a crisis as the Federal Reserve kicks its “quantitative tightening” into high gear this month.
With the Fed doubling the pace at which its bond holdings will “roll off” its balance sheet in September, some bankers and institutional traders are worried that already-thinning liquidity in the Treasury market could set the stage for an economic catastrophe — or, falling short of that, involve a host of other drawbacks.
https://www.marketwatch.com/story/the-next-financial-crisis-may-already-be-brewing-but-not-where-investors-might-expect-11663170963