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of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
US TSYS
Some market attention on the Treasury's Primary Dealer Meeting Agenda ahead of quarterly refunding announcement on Nov 2 (MNI Brief here). The part that's gotten the most attention is on potential Treasury buybacks - see below for reference.
- As the Treasury notes, it's suggested previously that it could conduct buybacks, which would mostly be done to shore up liquidity in some off-the-run securities, for example, as opposed to a change in net issuance.
- As such, few implications per se for the broader market, but could have a positive impact on off-the-run issues vs on-the-run counterparts. However, not seeing much of a reaction to the release when comparing current benchmarks to off-the-runs.
- Some clients had asked us following the dramatic headlines on this article whether this was tantamount to considering another QE (Reuters: TREASURY ASKS MAJOR BANKS IF IT SHOULD BUY BACK SOME U.S. GOVERNMENT BONDS TO IMPROVE MARKET LIQUIDITY") , and it certainly is not.
- Liquidity management will be one of the elements to watch for in the upcoming refunding announcement, though and it is a coincidence that it will come out close to the November 2 FOMC decision..
https://home.treasury.gov/system/files/221/Dealer-...Source: US Treasury
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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