JP Morgan: The quarter-end financing market has passed the "QT test"

According to JPMorgan Chase, financing market activity is sluggish around corporate tax payment dates and quarter-end, coupled with minimal use of the Federal Reserve's long-term repurchase tools, indicating that "reserves still seem ample." "Quarter-end financing pressures are under control, and repurchase conditions are weaker than during the last corporate tax payment date," stated a report from the JPMorgan team led by Teresa Ho on Thursday. As attention turns to reserve levels, market participants are assessing the end date for the Federal Reserve's balance sheet reduction or quantitative tightening plans. They noted, "We see no reason why QT cannot continue until the end of the year."