Money Market Update
money markets once again point to calm. SOFR climbs above Fed Funds, but this is down to quarter-end pressures rising (and soon to fall). a FHLB monitor has now been added and more sections to follow
In case you missed it — or you’ve just joined us — our latest piece on the Fed’s official onshore defense mechanism went live recently (which pushed us to over 40k+ readers. Thanks for the support!).
Next, we’ll turn to the Fed’s global defense mechanism, with a few other topics intertwined. A small teaser below…
But first, a money market update…
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Why did the DVP repo rate reach 5.3%? Does it mean nothing?
Hi Conks, thanks for giving us this update. What does it mean when SOFR < EFFR and SOFR > EFFR, is it SOFR decided by market dynamics, or the FED has any control over it?