Federal Reserve officials are concerned about leverage risks in the US bond market and emphasize the importance of the bond market's resilience development

Zhitong
2024.08.21 22:44
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Federal Reserve officials are paying attention to the leverage risks in the U.S. Treasury market. They discussed various potential risks in the financial system at their recent policy meeting, especially the impact of basis trading. Although basis trading remains popular in hedge funds and is seen as a potential issue, it has not increased market volatility at the moment. Meanwhile, the yields on 10-year and 30-year U.S. Treasury bonds have dropped to their lowest levels this year, indicating that the market is preparing for a possible rate cut by the Federal Reserve