Remember, this global 'basis' is what The BIS describes as better-than-VIX for signaling global fear (or greed).

Just as the VIX index was a good summary measure of the price of balance sheet before the crisis, so the dollar (basis swap) has become a good measure of the price of balance sheet after the crisis. The mantle of the barometer of risk appetite and leverage has slipped from the VIX, and has passed to the dollar (basis swap).

Summing up, Bloomberg's Cameron Crise notes that in fixed-income relative value - historically a very profitable, highly leveraged strategy - relationships have frayed to the point of incredulity, indicating high levels of distress.

One consequence of this basis swap repricing is that USD-denominated treasuries are suddenly more expensive to hedged foreign buyers to the tune of roughly one rate hike. Which, all else equal, would mean that there is now that much less demand by international buyers for TSY paper on the long end.