Mnuchin capital curb sets up dollar duration for SSAs

Steven_Mnuchin_PA_230x150
By Craig McGlashan
15 Jun 2017

A call by US Treasury secretary Steven Mnuchin this week to lessen the capital burden on banks had a bigger effect on US rates than a well telegraphed Federal Reserve target rate rise, creating some breathing space in long end swap spreads. That could ease long dated public sector bond issuance, but with euro market offering enviable duration funding, there may not be a queue of borrowers ready to print, writes Craig McGlashan.

The proposed reform was part of a wider US Treasury document released on Monday about changes aimed at improving the US financial system. But it was the part on deregulating capital holdings that really moved the dollar market.

“The

Please take a trial or subscribe to access this content.

Contact our subscriptions team to discuss your access: subs@globalcapital.com

Or sign up for a trial to gain full access to the entire site for a limited period.

Free Trial

Corporate access

To discuss GlobalCapital access for your entire department or company please contact our subscriptions sales team at: subs@globalcapital.com or find out more online here.