JPMorgan Sees Ample Demand for Growth in Treasury Bill Supply

The US Treasury appears to have scope to boost the supply of short-term bills as a share of its total debt load based on the potential for increased demand from several key investor segments, according to JPMorgan Chase & Co.

Money-market funds — already the largest buyers of bills — face new regulatory requirements that are likely to make them even bigger buyers. Federal Reserve officials have said the central bank’s holdings should shift toward bills. Stablecoin issuers and Berkshire Hathaway Inc., whose bill holdings represent small shares of the market, may also require larger amounts.