It has dropped five basis, then jumped ten basis points over a two week period.
The government seigniorage is unstable, GS is having a hard time keeping the ten year yield fixed. The tax bill having its up and down effects on yields. The ten basis point swing is a half point change in interest charges over a two week period, government funding rates are very uncertain, at the moment.
The only way to cover the instability is to draw in a larger bunch of depositors.
No comments:
Post a Comment