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J.P.Morgan Flag Liquidity Backdrop As Catalyst For Strong 7-Yr Auction

US TSYS

In the wake of Thursday’s very strong 7-Year Tsy auction J.P.Morgan think that “the strength of end-user demand can be partially explained by end users utilizing the auction process as a liquidity event amid weak liquidity in the secondary market. To that effect, we note that liquidity conditions remain depressed compared to historical values. While market depth has recovered somewhat from recent lows, the price impact of transactions in the Treasury market is elevated relative to the average of the last two years”

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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