Money Market Update
money market liquidity remains ample, with repo (SOFR) volumes approaching new heights alongside the Fed's foreign repo pool. bank reserves, meanwhile, remain elevated with a reduced QT
In case you missed it — or you’ve just joined us — part three of our Demystifying the Repo Market series went live…
We hope you enjoyed the intricacies of the repo market, but now we’re taking a breather to explore other regions of the financial system. First up, the Fed’s new — and existing — “defense mechanisms.” A small taster below…
Now, onto the money market brief…
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Hi Conks, I have a question in relation to the Foreign Repo. Is this actually QE like scenario, where the FED is just lending bills to other CBs to have dollar liquidity and if the actual Foreign RRP is increasing why the dollar doesn't have weakness?
After the BTFP execution, the volume of US Treasuries in the repo market plummeted.
Do you have any comments on this, as it seems that US Treasuries held in the BTFP should return to the market until next March?
I'd really like to hear what conks has to say.