Wall Street Sounds Alarm on 20-Year Treasury Bond Dislocation

Mark Cabana knows he sounds like a broken record by now.

Yet the head of US interest-rates strategy at Bank of America Corp. makes no apologies for repeatedly calling on Janet Yellen’s Treasury Department this year to enact big reforms to the $23 trillion Treasury market as liquidity drops toward pandemic-era levels.

Cabana’s latest gripe: The 20-year Treasury bond issue, relaunched in 2020 after a near 35-year hiatus, is finding limited demand on Wall Street -- possibly costing the taxpayer and another sign that all is not well in the world’s biggest bond market.

“We are seeing more dislocations ...