US Rate Futures Trading Surges in July Contracts as Banks Split on Treasury Bill Supply
Updated
Updated · Bloomberg · Jul 1
US Rate Futures Trading Surges in July Contracts as Banks Split on Treasury Bill Supply
2 articles · Updated · Bloomberg · Jul 1
Summary
July futures tied to SOFR and the effective federal funds rate have seen a sharp jump in trading volume and open interest in US short-term rate markets.
The burst of activity follows conflicting Wall Street calls on how an expected increase in Treasury bill supply later this month will affect funding and front-end rates.
Open interest — the number of outstanding positions — has risen alongside turnover, signaling traders are building bets rather than just rotating existing ones.
The contracts at the center of the move are CME Group products, underscoring how bill-supply expectations are spilling directly into money-market derivatives.