TD Securities strategists wrote in the report that if the US Treasury bond market collapses in a disorderly manner, the Federal Reserve can intervene in a variety of ways. The interest rate team, led by Gennadiy Goldberg, wrote that policy options include “expanding the operation of liquidity instruments and foreign central bank swaps, and easing restrictions on banks' balance sheets through temporary relaxation of supplementary leverage ratios in the adjustments of various institutions.” If market liquidity deteriorates drastically, it may prompt the Federal Reserve to “completely stop quantitative austerity and start quantitative easing for the purpose of stabilizing the market.” “If the financial environment is at risk of a sharp tightening, the Federal Reserve may cut interest rates and may even resume using certain 'letter soup' tools to stabilize specific markets.”

TD Securities strategists wrote in the report that if the US Treasury bond market collapses in a disorderly manner, the Federal Reserve can intervene in a variety of ways. The interest rate team, led by Gennadiy Goldberg, wrote that policy options include “expanding the operation of liquidity instruments and foreign central bank swaps, and easing restrictions on banks' balance sheets through temporary relaxation of supplementary leverage ratios in the adjustments of various institutions.” If market liquidity deteriorates drastically, it may prompt the Federal Reserve to “completely stop quantitative austerity and start quantitative easing for the purpose of stabilizing the market.” “If the financial environment is at risk of a sharp tightening, the Federal Reserve may cut interest rates and may even resume using certain 'letter soup' tools to stabilize specific markets.”