TBonds are hardly illiquid during crises -- as a matter of fact, they are among a select few securities that trade heavily when bad things happen. Source: look

TBonds are hardly illiquid during crises -- as a matter of fact, they are among a select few securities that trade heavily when bad things happen. Source: looked on in dismay as the (legacy) treasury trading system at an investment keeled over and died the day after Lehman ate shit.