Term and Type: 154-Day Bill
High Rate: 0.150%
Total Accepted: $40,000,027,000
Now is not the time to be nibbling.
There were no Lehman’s or anything like it during March 2020. Does that mean there hadn’t been a crisis? According to some, yes. If you were talking specifically about a bank crisis, then, of course, that would be true. There was no bank crisis last month. It would […]
$321 Billion
That’s how much cash the Fed will pump into Primary Dealer accounts this week. Guess how much new Treasury issuance there will be over the same period. If you guessed $321 billion, you would be all but correct. It’s $328 billion.
That’s right. The Fed is buying all of the COVID19 rescue financing. It’s inventing imaginary money to pay Primary Dealers for that new supply. The Fed is printing the money to pay for the economic bailout.
And it’s not stabilizing the financial markets. Here’s why, and what it means
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.