BNP Paribas Unit Offers Solution to Treasury Liquidity Riddle

  • Says Treasury should exchange off-the-run bonds for newer ones
  • BNP issues proposal amid concern on market evolution

The U.S. Treasury Department should offer a standing facility to swap less-liquid off-the-run securities for on-the-run bonds to avoid triggering sharp market movements, BNP Paribas Investment Partners said in a proposal.

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