Lifeless Treasury Market Needs a Jolt From Pile of Parked Cash
- Dealer holdings of T-bills near lowest levels since 2015
- In futures, lack of conviction has investors playing the range
Photographer: BeyondImages/E+ via Getty Images
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Across U.S. interest-rate products -- from cash Treasuries to futures to eurodollar options -- indications abound that conviction is in short supply. With the Federal Reserve in transition from hiking to pausing and no clear direction in market rates, investors and traders appear to expect narrow ranges to persist.
Positioning data from the U.S. Commodity Futures Trading Commission is still delayed in the wake of the U.S. government’s partial shutdown. But several corners of the market are signaling that money is waiting on the sidelines.