Skip to content
Subscriber Only

Wall Street Banks Amass Treasuries Signaling Faith in Rate Cycle

Updated on

Wall Street’s biggest bond dealers are amassing the most Treasuries since March last year in a sign they’re confident the Federal Reserve’s tightening cycle will proceed in an orderly fashion.

JPMorgan Chase & Co., Citigroup Inc. and the 20 other companies that trade with the Fed increased their holdings for a fourth week to a net $69 billion, in data reported Thursday. Traders see an almost 60 percent chance of the first rate increase since 2006 coming in September after a Labor Department report Friday showed U.S. employers added more than 200,000 jobs in July and wages increased.