HALISTER1: Buy 6-Month T-Bills vs OIS Amid Anticipated Supply Cut, JPM Says

Buy 6-Month T-Bills vs OIS Amid Anticipated Supply Cut, JPM Says

(Bloomberg) -- Trade recommended as Treasury bill issuance is expected to turn negative beginning next week when individual tax receipts increase, JPMorgan strategists led by Jay Barry said in April 10 note.
  • An estimated -$123b in net T-bill issuance during the next four weeks
  • Over the past five years, richening in T-bills has coincided with a tapering of the seasonal upswing in issuance around mid-March
    • This year’s richening is likely to begin later than in the past due to the supply cut before the debt ceiling reinstatement on March 16

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Jay Barry (JPMorgan Chase & Co)

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