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t-bills

No Reserving Interpretation About Reverse Repo Collateral Connection(s)

By |2021-05-26T17:04:58-04:00May 26th, 2021|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Why are Treasury bills the best of the best, the purest of the most pristine? The better part of the answer comes in the form of a mere three letters: O, T, and R. Those happen to stand for on-the-run which in repo simply means dependably liquid. OTR securities are those most recently auctioned thereby the specific securities which have [...]

Reserving Observations On The Reverse Repo Of Reserves

By |2021-05-25T18:29:31-04:00May 25th, 2021|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

For what it ever may have been worth, you have to at least acknowledge the Federal Reserve really did put its (own limited use form of) money where its abundant mouth had been. The entire story of the crisis era and then post-crisis experience of “abundant reserves” indicated a monetary situation (liquidity, colloquially) where supposedly money was beyond sufficient. Too [...]

SOMA’s Been Talking For Over A Year: Jay’s Got Some Explaining To Do (bills)

By |2021-05-03T20:05:32-04:00May 3rd, 2021|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

This goes back to the earliest days of the Federal Reserve. In 1912 and even before, in order to sell the skeptical public on another central bank – the nation’s third, and first in three-quarters of a century - in what was already going to be an uphill battle, Congress demanded that this thing be called something other than a [...]

TGA & RRP, Bills Fed Up

By |2021-03-17T19:36:37-04:00March 17th, 2021|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

When the 4-week Treasury bill equivalent yield traversed the so-called RRP “floor” back in 2017, hardly anyone noticed. With rates nominally rising due to the Federal Reserve’s historically dovish hawkish normalization push, it was all a jumbled mess. What if the 4-week bill rate (or 3-month) was somewhat less than this RRP thing-y, they were all moving anyway.Even as the [...]

What Might Be In *Another* Market-based Yield Curve Twist?

By |2021-02-22T18:55:51-05:00February 22nd, 2021|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

With the UST yield curve currently undergoing its own market-based twist, it’s worth investigating a couple potential reasons for it. On the one hand, the long end, clear cut reflation: markets are not, as is commonly told right now, pricing 1979 Great Inflation #2, rather how the next few years may not be as bad (deflationary) as once thought a [...]

Two Seemingly Opposite Ends Of The Inflation Debate Come Together

By |2021-02-18T20:02:09-05:00February 18th, 2021|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

It’s worth taking a look at a couple of extremes, and the putting each into wider context of inflation/deflation. As you no doubt surmise, only one is receiving much mainstream attention. The other continues to be overshadowed by…anything else. To begin with, the US Bureau of Labor Statistics reported today that US import prices were up on annual basis for [...]

Too Much TGA

By |2021-02-05T20:09:27-05:00February 5th, 2021|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

If you remember back to September 2019’s repo rumble, in its immediate aftermath - as well as for some time thereafter - a common explanation put forward for the disruption had been related to a sudden increase in tax liabilities. It was said that an unusually high level of especially corporate receipts had left the Treasury flush with extra cash. [...]

One More For Bill To Consider: 中国特色社会主义

By |2021-02-02T17:45:23-05:00February 2nd, 2021|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Was it all mere window dressing? A con pulled by cunning Communists who needed to secure the collateral security of an intended transition toward the opposite direction? What a difference a few years makes, then, given how when Xi Jinping began his term in 2012 the word most in the West used to describe his agenda was “reform.” Every strongman [...]

Hey Bill, *Why* Now?

By |2021-02-01T20:24:50-05:00February 1st, 2021|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

I think because the big, public failures of GFC1 haven’t repeated the public has been given a false sense of stability. While the idea of subprime mortgages being responsible for all that went on during 2008 has remained generally accepted, there was for a time an awakened recognition that big financial firms were doing complicated things in the monetary shadows [...]

Hey Bill, *What* Is It?

By |2021-02-01T18:00:33-05:00February 1st, 2021|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

There are those people who will remain convinced forever forward that the Federal Reserve is run by capable technocrats absolutely skilled at maintaining for the free peoples of the United States their financial freedom. At a general level, they are thought to do so by signaling to market and economic participants just how these should respond to monetary policy inputs. [...]

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