T-Bill Demand Spurs Tension on Wall Street as Fed Cuts Seen
- Apollo’s Slok splits with Wall Street, warns of market turmoil
- Money funds could continue attracting flows after cycle starts
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The ramp-up in US Treasury-bill sales over the past year is fueling a debate on Wall Street as to whether there will be enough demand to avoid roiling the funding markets.
Treasury has issued $2.23 trillion of bills since the beginning of 2023, ratcheting up supply recently to finance the government deficit. So far, the market appears to have taken down the issuance with ease as seen in the pricing of T-bills versus other risk-free rates, like those on overnight index swaps that has remained relatively stable.