The World’s Most Important Market Needs Some Work

Treasury securities play a crucial role in global finance. They’re widely viewed as a close substitute for dollars, a safe place to park everything from a company’s cash to a central bank’s reserves. They provide a benchmark for determining the value of a vast array of assets, including mortgages, corporate bonds and shares in public companies. They’re the ultimate expression of the reliability of America’s capital markets.

It’s thus troubling that the Treasury market has faltered at critical moments, raising fears of further disruptions as central banks end a long period of easy money. Authorities can and should take steps to ensure the market works as smoothly as possible — but they must be mindful not to weaken the broader financial system in the process.