Bluetick1010

revenant Wrote:
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> I think it should be the opposite.
>
> Long will benefit when i/r increase. Long has the
> obligation to borrow at the contract rate (say
> 5%). If i/r increase (say 10%), the long benefit
> by able to borrow at 5% instead of 10%. Opposite
> is true for shortist.


This is a T-Bill foward not a Forward Rate Agreement (FRA) so no borrowing will take place. Sujan, I believe you are correct with your interpretation.