Government bond trading is typically over-the-counter, with dealers playing a key role as intermediaries. Pressure on their intermediation capacity is set to increase as government debt continues to grow. We describe results from new research, which illustrates the risks of dislocation in major segments of the most important fixed income market, US Treasuries. We also provide a European perspective by highlighting key characteristics of EU government bond trading and the relevance of US policy work launched after the Covid dislocation for these markets.