Swap Spreads Poised to Widen Amid T-Bill Supply Distortions: BMO
Alert: HALISTER1
Source: BFW (Bloomberg First Word)
People
Aaron Kohli (Bank of Montreal)
Ian Lyngen (Bank of Montreal)
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UUID: 7947283
(Bloomberg) -- The market is coalescing around the idea that Treasury bill supply will increase through mid-April and will then start to fall after the tax deadline, which makes the case for swap spread widening, BMO strategists Ian Lyngen and Aaron Kohli say in note.
- Spreads should also widen as “eventual concerns about the debt ceiling take hold once again”
- “Key risk” to widening spreads is if the Fed starts to discuss shrinking its balance sheet
- Passing an increase to the debt ceiling early would be another risk, “but don’t hold your breath on that one”
- Related story: Swap Spreads Seen Widening as Debt Ceiling Reinstituted: Chart
Alert: HALISTER1
Source: BFW (Bloomberg First Word)
People
Aaron Kohli (Bank of Montreal)
Ian Lyngen (Bank of Montreal)
To de-activate this alert, click here
To modify this alert, click here
UUID: 7947283