The spread between cash and safe bonds

The ten year couldn't hold 2.6%, and fell back to 2.58. Cash, six month version, is 2.46. That is a 12 basis point spread, not worthwhile for the private banks.  The spread is almost strictly a Fed managed differential.

That transaction cost to the Fed is exactly the tiny leakage of currency risk we need to capture, to keep the tree trunk round.  If the Fed could just burp a few defaults and remind account holders of the contractual requirement of default, would be nice. The government agencies would say,'Whoops, oh yes, the new cash flow accounting'.