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Basis Trade Has Ballooned to $1.5 Trillion, Morgan Stanley Says
Market Intelligence Analysis
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Why This Matters
The basis trade has reached $1.5 trillion, prompting concerns about its potential impact on the market, echoing the 2020 market eruption.
Market Impact
Market impact analysis based on bearish sentiment with 70% confidence.
Sentiment
Bearish
AI Confidence
70%
Time Horizon
Short Term
Article Context
Note: This is a brief excerpt for context. Click below to read the full article on the original source.
The basis trade has swelled to roughly $1.5 trillion, underscoring the need to closely monitor its size to avoid a repeat of the market eruption seen in 2020, according to Morgan Stanley strategists.
Original article published by
Bloomberg
on January 14, 2026.
Analysis and insights provided by AnalystMarkets AI.
Analysis and insights provided by AnalystMarkets AI.