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Zooming out, here are some points I've been considering: 1. A repo intervention on this scale hasn't happened since the 2008 crisis. 2. Experts seem divided o
by aazaa 7y ago
Zooming out, here are some points I've been considering:
1. A repo intervention on this scale hasn't happened since the 2008 crisis.
2. Experts seem divided on what's causing the extremely tight overnight liquidity phenomenon.
3. The Fed refused to budge from its tepid stance on long-term rates and restarting QE in its recent meeting. This stands against a backdrop of a stagnating world economy, the collapse of foreign sovereign bond yields, and unprecedented browbeating from the White House.
- JumpCrisscross 7y ago> Experts seem divided on what's causing the extremely tight overnight liquidity phenomenon Divided on root cause, but not on its seriousness. Quarterly tax payments on the same day as a massive Treasury issuance amidst a Eurodollar carry trade that yields more, for longer, than the overnight markets. Nothing related to the soundness of the financial system.