Contract design, higher yields make basis trade alternatives attractive

Hugo De Vere, Matthew McCormick and Srini Ramaswamy

Dallas Fed Economics from Federal Reserve Bank of Dallas

Abstract: Recent plateauing in activity involving the basis trade, in which investors buy Treasuries and sell their futures, has generated policymaker attention and questions about factors driving the shift. Among questions is the extent to which a deleveraging of Treasury holdings may be affecting demand for short-term funding.

Keywords: Treasuries; basis trade (search for similar items in EconPapers)
Date: 2026-10-16
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Persistent link: https://EconPapers.repec.org/RePEc:fip:d00001:103958

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