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Basis Trade (& Treasury Funding) Is At Mercy Of Mutiny At The Fed

Tyler Durden's Photo
by Tyler Durden
Authored...

Authored by Simon White, Bloomberg macro strategist,

A more discordant Federal Reserve next year increases the likelihood of higher short-term rate volatility, posing a risk to the basis trade and inflating Treasury funding costs.

It’s going to be a year of flux for the Fed.