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treasury bills

Sorry, One More On Bills: Today A Really Good Example of All The Things We’ve Been Focused On Lately

By |2021-07-20T17:44:36-04:00July 20th, 2021|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

I had intended to lay off the T-bills today, just to write about something else, anything else, but, as often occurs, circumstances intervened. We’ve been subjecting you to seemingly unrelenting focus on Treasury bills’ various follies this year. The reason is quite simple, and trading early in the morning today a very good example both of “what” and “why.”FRBNY last [...]

Lower Yields And (fewer) Bills

By |2021-07-19T19:55:10-04:00July 19th, 2021|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Back on February 23, Federal Reserve Chairman Jay Powell stopped by (in a virtual, Zoom sense) the Senate Banking Committee to testify as required by law. In the Q&A portion, he was asked the following by Montana’s Senator Steve Daines: SENATOR DAINES. I just was looking at the T bill chart and noticing since the 1st of February, the one [...]

RRP No Collateral Coincidences As Bills Quirk, Too

By |2021-07-09T19:50:23-04:00July 9th, 2021|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

So much going on this week in the bond market, it actually overshadowed the ridiculous noise coming from the Fed’s reverse repo. Some maybe too many want to make a huge deal out of this RRP if only because the numbers associated with it have gotten so big. To end Q2 2021, financial counterparties “lent” just about $1 trillion to [...]

Indirect *Bill* Bidders Aren’t Who You Think, Helping Explain the Anti-Reflation Behind Reverse Repo

By |2021-06-21T17:36:59-04:00June 21st, 2021|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Following this morning’s Treasury bill auctions, each of the last three for the three shortest maturities (4-week, 8-week, 13-week) have each priced to yield less than the new reverse repo “floor” rate set by the Federal Reserve last Thursday. The first two of those, a 4-week and an 8-week, took place on the new RRP’s first day. The latest is [...]

The FOMC Accidentally Exposes Itself (Reverse Repo-style)

By |2021-06-17T19:10:11-04:00June 17th, 2021|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Initially, the dots got all the attention. Though these things are beyond hopeless, the media needs them to write up its account of a more fruitful monetary policy outcome because markets continue to discount that entirely. Dots look like inflationary success if possibly even now more likely, whereas yields and especially bills have (re)taken a more skeptical approach pricing almost [...]

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 [...]

Bill Yellen

By |2021-04-30T19:53:28-04:00April 30th, 2021|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Treasury Secretaries, like Federal Reserve Chairmen, they don’t talk much about or pay much attention to the market’s need for collateral. They may pay some, but not specifically collateral if only under the vaguely defined category of “market consideration” when setting auction supply. Collateral shortages have come and gone, however dreadful, never eliciting a direct response insofar as supply has [...]

FOMC Statement Makes A Statement Without Really Knowing It

By |2021-03-17T18:57:56-04:00March 17th, 2021|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Oh, the irony. Recall Janet Yellen’s plight, circa early 2015. Oil prices were “unexpectedly” crashing raining on her recovery-like parade. The Federal Reserve, Yellen as its Chairman, was about to embark on an ambitious program of regular every-meeting rate hikes to head off, its models assumed, the coming inflationary bump which was to confirm full if belated monetary policy success. [...]

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