A Wider Safety Net for Treasurys may have Pitfalls

A new central clearing rule looks set to shake the foundations of the $27 trillion Treasury market at one of the most challenging times for the U.S. government and investors.

While there are risk-reducing benefits to expanding central clearing for U.S. Treasurys, experts say that implementing a broader mandate will not be easy and could cause new problems at a time when the market is in a fragile state.