Bonds
CME Restarts T-Bill Futures in Response to Demand to Hedge Risks
- Exchange plans to start trading Oct. 2, pending review
- Supply of bills has grown by more than $1 trillion since June
This article is for subscribers only.
CME Group Inc. will once again offer futures tied to three-month Treasury bills amid growing demand to hedge risks from surging supply and higher short-term interest rates.
Uncertainty over the Federal Reserve’s policy path and a flood of issuance to finance US growing deficits and rebuild the goverment’s cash buffer has sparked increased volatility in this corner of the market. The exchange plans to start trading futures tied to the Treasury’s benchmark three-month bills on Oct. 2, pending regulatory approval, according to a statement.