Article ID: bd860a87320c29d9242d6bb13cc37d39afec9e73027948069d3d4f762bbef24f
Source ID: regulatory:risk.net
Published At: -
Extraction Method: trafilatura
URL: https://www.risk.net/topics/us-treasuries
Body Text
US Treasuries CME aims to offer client UST cross-margining internally in 2027 CCP has filed initial proposal with SEC; wants to offer more products than joint FICC programme US Basel III will provide reprieve for clearing, but no release Worst excesses of original endgame proposal avoided, but increased capacity still seen as unlikely MBS convexity hedging: back with a vengeance, or ghost story? More bonds now sit with active hedgers but market is split on whether flows can move US rates again US banks show little risk shift after eSLR relief Lowest-risk exposures hit record, but BNY drives largest reallocation US regulators cut FRTB’s IMA capital hit by 59%, Isda finds Trade body pushes for further changes to cross-product netting, default risk charge Treasury basis trade loses its allure as returns shrink Tight spreads and rising funding costs are pushing the cash-futures basis trade out of favour Clearers face heavy lift on CME-FICC cross-margin service Dual registration and regulation plus uncertainty over close-outs all weigh on client offering Goldman breaks with peers in $50 billion long-term securities push Wall Street behemoth doubles holdings of 5+ year debt as other G-Sibs continue to shorten duration US G-Sibs’ trading assets hit record $3.6 trillion JPM, Goldman, Citi and Morgan Stanley drive $520 billion quarterly increase amid turbulent markets Banks fear US cross-product capital relief will fall short Proposal to treat repo as futures for SA-CCR may not do enough to support UST clearing mandate Tokenisation could boost repo capacity by up to 60% Isda AGM: Digital Asset’s Rooz says intraday repo will deliver huge balance sheet efficiencies How the Iran war wreaked havoc on consensus US rates trades Hedge fund steepeners, swap spreads and vol-selling strategies were hit as conflict forced stop-outs during March For collateral, can TINA become TIA? US Treasuries’ dominance as collateral in repo and derivatives is no longer set in stone, argues economist CME-FICC cross-netting terms fuel clashes Hedge funds worried by CCP powers to suspend arrangement; clearing members say it’s standard practice Hopes rise for cross-product netting under SA-CCR Banks want rule change in Basel III endgame to lower capital costs of clearing UST repos US Treasuries clearing: a new era What will the SEC’s clearing mandate mean for your firm? Explore the latest updates and analysis around clearing models, collateral requirements, risk tools and market structure US banks trim long-dated bonds to 10-year low Medium-term securities reach record as 5+ year share hits decade low US banks lose appetite for Treasuries as G-Sibs turn to trading book Two-year surge in non-trading USTs plateaus as HFT bonds tick up Hedge funds trim US swap spreads on tariff decision Investors cut back asset swap positions as Supreme Court ruling reignites deficit concerns Market players warn against European repo clearing mandate Regulators urged to await outcome of US mandate and be wary of risks to government bond liquidity Treasury repo clearing mandate would free up $207bn leverage exposures for G-Sibs OFR estimates repo clearing share would jump from 45% to 77% under SEC rules
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