The case for hedging reserves portfolios with futures contracts


Click here to view the full article.

The Federal Reserve’s loose monetary policy and deployment of unconventional monetary policy tools since the start of the financial crisis has resulted in interest rates trending to historical lows for the past six years. A comparison of US Treasury yield curves 2008–14 (see Graph 1) shows yields have decreased on average between 200 to 500 basis points, depending on the maturity of the Treasury bond.

This trend might now be at an end. Due to improved US eco

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: