> People are worried about bond market liquidity

The market for government debt of big, rich countries like the United States and United Kingdom is, famously, supposed to be the deepest and most liquid on earth. They are the bedrock of the world financial system; bond prices aren't supposed to bounce around like a penny stock.

That hasn't really applied in recent days, particularly in Britain. Bond prices are careening around wildly, in ways that indicate serious strains in the global financial system. Why it matters: Government debt markets are showing signs of the kinds of turbulence and lack of liquidity that, should it persist, will make all financial assets more volatile and make a looming economic downturn worse.

It's painful enough when interest rates rise because the Federal Reserve or Bank of England hikes them to fight inflation. It's all the worse if they rise beyond the point justified by those fundamentals. The sense of panic in the market and a lack of liquidity have undermined the desire or ability to buy bonds recently, even at attractive prices. Driving the news: The BoE announced Wednesday morning it will buy long-term government debt on whatever scale necessary to "restore orderly market functioning." It also delayed the start of its quantitative tightening program meant to unwind securities acquired in its pandemic stimulus.

https://www.axios.com/2022/09/28/people … -liquidity

This is going to make 2008 look fun 
No big war or energy crisis back then.