'Our core message to front end investors: be patient in the face of elevated supply,' says BofA Global rates strategists.
A deluge of Treasury issuance unleashed in the wake of the early June lifting of the U.S. debt-ceiling by Congress has been working its way through the plumbing of financial markets, so far, without much of a hitch.
Investors, however, might consider this rationale for waiting a bit, instead of buying new Treasury bills that will refill U.S. coffers run low by the debt-ceiling fight. Given their estimate for $1.4 trillion of expected T-bill supply through the next six months, the 3-month bill should cheapen by 76 basis points relative to OIS , which is a proxy for overnight rates.
At the same time, demand last week for the Federal Reserve’s popular reverse repo facility fell below the $2 trillion mark for the first time this year, as money-market funds looked to deploy into the flood of bill issuance, instead of collecting 5.05% overnight at the central bank.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Ambulance wait times: Woman died after 13-hour waitAn inquest hears a woman died of heart failure after waiting for an ambulance for 13 hours.
Read more »
BTS's 'Take Two' lands at #1 on Billboard's Global 200 + Global Excl. U.S. | allkpopBTS's 10th anniversary special single 'Take Two' has successfully landed on various Billboard charts after its release last week on June 9…
Read more »
Global Stage, Global Names: K-Pop Idols with the Best English Names | allkpopAs K-Pop continues to grip the global audience with its vibrant music and charismatic idols, one aspect that particularly resonates with internationa…
Read more »
Stocks are defying risks and naysayers, will rally more: BofA strategistUS stocks are defying naysayers like they did in 2019 and 2016 - charts signal the rally will extend, a Bank of America strategist says
Read more »
BofA top equity strategist Savita Subramanian takes most bullish position in at least ten yearsThe market is more rational than it’s been in a decade, according to BofA Securities' head of U.S. equity and quantitative strategy.
Read more »
BofA top equity strategist Savita Subramanian takes most bullish position in at least 10 yearsThe market is more rational than it’s been in a decade, according to BofA Securities' head of U.S. equity and quantitative strategy.
Read more »