The treasury market is so big I would be surprised if that is a consideration but I could be wrong. There is $25tn notional outstanding and a lot of players in the market have been complaining about lack of liquidity for a while now so if Tether was to completely evapourate, having on large passive investor out of the picture should (I would think) make it better for everyone else if they notice at all.
The liquidity issue is on the buyer side, there arent enough buyers of government bonds, which is why weve now had a couple rocky bond auctions. If there wasnt enough bonds to buy then interest rates would be in decline as banks outbid each other.
Here’s more detail from the NY fed about treasury liquidity overall https://libertystreeteconomics.newyorkfed.org/2023/10/how-ha...
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