Debt investors can breathe a sigh of relief and stop frettingabout liquidity in the market, according to the U.S. Treasury.

Measures of corporate-bond liquidity—typically defined as theability to trade an asset without moving its price—show all iswell, with volumes, sizes, and bid-offer spreads similar to orbetter than historic averages, Jake Liebschutz, director of thecapital markets office at the department, wrote in a blog post onthe Treasury's website. Complaints about and predictions of aliquidity crisis are instead the result of an evolution in the bondmarket, he wrote, alongside Brian Smith, a senior policy adviser inthe same office.

“The available evidence, when viewed holistically and in lightof recent market trends, does not suggest a broad-baseddeterioration in liquidity,” they wrote. Rather, “the corporatebond market is undergoing significant changes that are reshapingthe nature of trading and liquidity provision.”