Money Market Update
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…
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Longer rates are slowly moving up again. Markets are finally digesting the implications of higher inflation and increased coupon issuance.