It used to be that at each quarter’s end the repo rate would rise often quite far. You may recall the end of 2018, following a wave of global liquidations and curve collapsing when the GC rate (UST) skyrocketed to 5.149%, nearly 300 bps above the RRP “floor.” Chalked up to nothing more than 2a7 […]
Off to the new quarter we go. The last quarter was historic, it had a massive blow-off top fueled by cheap money andexuberant optimism ignoring all the negatives and technical warning signs, […]
102-Day Bill Offering Amount: 40 Billion
39-Day Bill High Rate: 0.080% Total Accepted: $45,000,378,600
Term and Type: 119-Day Bill Total Accepted: $40,000,546,500 High Rate: 0.130%
The Fed is buying all the new Treasury supply with enough cash left over for the dealers to mount a defense. They aren’t.
Monetary policy can be implemented through outright purchases or sales of securities, which permanently changes the size of the Federal Reserve’s System Open Market Account (SOMA) portfolio.
Monetary policy can be implemented through outright purchases or sales of securities, which permanently changes the size of the Federal Reserve’s System Open Market Account (SOMA) portfolio.
The Washington Post began this week by noting how the US economy seems to have lost its purported zip just when it needed that vitality the most. Never missing a chance to take a partisan swipe, of course, still there’s quite a lot of truth behind the charge. An actual economic boom produces cushion, enough […]
The Fed has cut back its direct cash injections to Primary Dealers this week. So far it has bought approximately $92 billion per day in…