Bank of America: If the Federal Reserve adjusts its asset allocation, it may absorb $2 trillion in short-term Treasury bonds in
-
最新报道：According to Bijie.com, Bank of America's latest analysis indicates that the Federal Reserve's potential adjustments to its Treasury holdings could result in the central bank purchasing nearly $2 trillion in short-term Treasury bills over the next two years, a figure nearly sufficient to absorb all Treasury issuance during that period. Bank of America strategists Mark Cabana and Katie Craig predict that the Fed will adjust its asset mix to better align its balance sheet, a move that would both protect against interest rate risk and negative equity risk and shorten the duration of liabilities. This would be a timely relief for the Treasury Department, which is currently issuing large amounts of short-term debt to cover its widening deficit and replenish its cash balance following the debt ceiling increase. "If you extrapolate the Fed's balance sheet and assume it reinvests mortgage-backed securities into Treasury bills, and also shifts maturing Treasury bonds into Treasury bills, it would be about $1 trillion," Cabana, Bank of America's head of U.S. interest rate strategy, said in an interview. "The amazing thing is that the Treasury is going to issue $1 trillion in Treasury bills, and the Fed is going to buy them. This creates a whole new demand for the Treasury market."
下一篇
Dogecoin Sellers in Control as Monero Attacker Votes to Target DOGE; Bitcoin Below $116K
- Dogecoin (DOGE) fell 4% to $0.22 as Qubic's community voted overwhelmingly to target its n...
24小时热点
热点专题
407106