Reported 6 months ago
JPMorgan Chase & Co. predicts ample demand for growth in the supply of short-term bills by the US Treasury based on potential increased interest from various investor segments, such as money-market funds, stablecoin issuers, and Berkshire Hathaway Inc. The US deficit is expected to remain high in the coming years, prompting considerations on how to manage the increased borrowing need through bill sales and longer-maturity notes and bonds. The Treasury Borrowing Advisory Committee is inclined to revisit their recommendation following sustained strong demand for bills and the group's minutes suggest readiness to accommodate additional borrowing capacity in the mid- to late-2025 period. Overall, there seems to be structural buyers prepared to absorb this supply when needed.
Source: YAHOO