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Contract design, higher yields make basis trade alternatives attractive


Abstract: Recent plateauing in activity involving the basis trade, in which investors buy Treasuries and sell their futures, has generated policymaker attention and questions about factors driving the shift. Among questions is the extent to which a deleveraging of Treasury holdings may be affecting demand for short-term funding.

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File(s): File format is text/html https://www.dallasfed.org/research/economics/2026/1016
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Provider: Federal Reserve Bank of Dallas

Source: Dallas Fed Economics

Publication Date: 2026-10-16