Regulators Seek Improved Visibility into Key Treasury Market Segments to Bolster Policymaking
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Regulators lack visibility into important Treasury market segments, hampering policymaking and oversight.
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Officials are working to improve transparency, including an upcoming OFR rule to collect repo market data.
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More data will help better estimate trades like the "basis trade," but gaps will remain in understanding motivations.
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Some worry new regulations aimed at leverage could unintentionally raise government debt costs.
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Officials underscore need for good data to properly assess market risks before acting.