Treasury delivery failures tied to 10-year notes just hit their highest level in nearly eight years. The culprit? The Federal Reserve's ongoing balance sheet contraction that kicked off back in 2022. When the central bank shrinks its holdings, liquidity in the bond market gets tighter, which can trigger settlement headaches. For crypto investors paying attention to macro trends, this signals something important: traditional finance markets are experiencing increased friction even in supposedly stable asset classes. It's a reminder that when legacy financial infrastructure faces strain, it ripples across all asset classes. The timing matters too—persistent delivery failures suggest the bond market might be signaling stress underneath the surface.