Remarks by Under Secretary of Domestic Finance Nellie Liang at the Future of Financial Markets: Innovation and Uncertainty, Georgetown Psaros Center for Financial Markets and Policy

Strengthening Treasury Market Liquidity and What RemainsAs Prepared for DeliveryThank you for the invitation to be part of this impressive conference on financial market quality and the opportunity to speak with you.[1]In my remarks today, I will focus on the Treasury market. This market serves the role of financing our government at the lowest cost to the taxpayer over time and is at the core of global financial markets. It provides the benchmark risk-free yield curve, and it helps underpin the role of the dollar in global transactions. And being the deepest and most liquid market in the world, it serves as a key source of safe and liquid assets for investors and is used for liquidity risk management by many financial firms, both banks and nonbanks.The Treasury market has evolved significantly over the last couple decades, driven in part by regulatory