Money Market Update
with low failures to deliver, stable bond volatility, tight dealer repo spreads, and tightening cross-currency bases, dollar liquidity is still in abundance
In case you missed it — or you’ve just joined us — our primer on the Fed’s upcoming changes to its rescue mechanism went live (link below)…
Next, we’ll look at the coming transformation of the repo market and how it may affect other dollar markets. A small taster below…
But first, a money market update…
If you act on anything provided in this newsletter, you agree to the terms in this disclaimer. Everything in this newsletter is for educational and entertainment purposes only and NOT investment advice. Nothing in this newsletter is an offer to sell or to buy any security. The author is not responsible for any financial loss you may incur by acting on any information provided in this newsletter. Before making any investment decisions, talk to a financial advisor.
EFFR, OBFR, SOFR, TGCR, and BGCR are subject to the Terms of Use posted at newyorkfed.org. The New York Fed is not responsible for publication of tri-party data from the Bank of New York Mellon (BNYM) or GCF Repo/Delivery-versus-Payment (DVP) repo data via DTCC Solutions LLC (“Solutions”), an affiliate of The Depository Trust & Clearing Corporation, & OFR, does not sanction or endorse any particular republication, and has no liability for your use.
Longer rates are slowly moving up again. Markets are finally digesting the implications of higher inflation and increased coupon issuance.