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🥷A REDUCTION IN LIQUIDITY INJECTIONS after prompting a huge compression in money market rates over the last five months, the Fed has reduced its RMOs (a.k.a RMPs) from $40b to $25b. the SOFR-FF basis curve “sold off” i.e. widened slightly, reflecting a “buy the rumor sell the news” outcome. this was presumably caused by markets expecting a more gradual decline in bill purchases, which will settle at what remains an unknown minimum amount that the Fed will inject on autopilot — until the next funding episode. Conks still thinks that number will turn out to be $20 billion, to offset reserves d

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