Morgan Stanley strategists, including Eli Carter, said that US Treasury bond cash-futures spread trading is still active and working well. They pointed out that spread trading has changed in terms of size, composition, and expected return, but it has not disappeared. Judging from the risk caliber after a long period of adjustment, the deal “hardly shrinks.” The total nominal size of transactions has dropped from a peak of 1.5 trillion US dollars in January to about 1.2 trillion US dollars. The reduction in scale was mainly concentrated at the front end of the curve — specifically TU and FV futures. In contrast to this, the strategist said that WN positions representing the furthest end of the curve increased by 50% year over year. As the relaxation of banking regulations progresses, attention has been paid to the issue of increased risk exposure for traders. This exposure has indeed expanded, but “the current transfer rate is still moderate, and we think it is unlikely that it will substantially restrict the brokerage business of traders.”

Morgan Stanley strategists, including Eli Carter, said that US Treasury bond cash-futures spread trading is still active and working well. They pointed out that spread trading has changed in terms of size, composition, and expected return, but it has not disappeared. Judging from the risk caliber after a long period of adjustment, the deal “hardly shrinks.” The total nominal size of transactions has dropped from a peak of 1.5 trillion US dollars in January to about 1.2 trillion US dollars. The reduction in scale was mainly concentrated at the front end of the curve — specifically TU and FV futures. In contrast to this, the strategist said that WN positions representing the furthest end of the curve increased by 50% year over year. As the relaxation of banking regulations progresses, attention has been paid to the issue of increased risk exposure for traders. This exposure has indeed expanded, but “the current transfer rate is still moderate, and we think it is unlikely that it will substantially restrict the brokerage business of traders.”