Treasury Increases Auction Sizes To Fund Soaring Deficit; Launches 2-Month Bill
The Fed likely giving the state owned enterprises access to legal money market funds on the treasury curve.
That trade was about getting SOEs freer money management. These enterprises need a liquid deposits. The Fed is starting to see the reverse repo triple play thing needs to be replaced.
The Fed is stuck with 40 years of currency risk embedded in government guarantees. They need to expose and get better pricing accuracy on tose insurance obligations. Internal funds need liquid access to tax dollar money markets. The monolithic Treasury is not, it is an unpriced set of symmetries inside Congress. These symmetries are major programs which need exposure to liquid banking.
The Fed is stuck with 40 years of currency risk embedded in government guarantees. They need to expose and get better pricing accuracy on tose insurance obligations. Internal funds need liquid access to tax dollar money markets. The monolithic Treasury is not, it is an unpriced set of symmetries inside Congress. These symmetries are major programs which need exposure to liquid banking.
No comments:
Post a Comment