FRED:RRPONTTLD
Overnight Reverse Repurchase Agreements: Total Securities Sold by the Federal Reserve in the Temporary Open Market Operations
Reverse repo market cooling off.
Let's see how this affects the Fed's positioning, considering the liquidity implications.
Expecting a 6-8 month lead time for the liquidity to make it's way to the market.
1. Banks pulling liquidity to backstop any liquidity crunch
2. Banks expecting the fed to pivot, so they can get better returns lending that money out rather than using it for RR ops. Lock long term high rates, lending money out, now.
Guessing this is front-running the fed.
Publishing to keep an eye on it.
IMO, Fed pivot != bullish. It means they likely overshot their desired outcome. Fed halting to re-analyze would be the best outcome in my eyes.
Let's see how this affects the Fed's positioning, considering the liquidity implications.
Expecting a 6-8 month lead time for the liquidity to make it's way to the market.
1. Banks pulling liquidity to backstop any liquidity crunch
2. Banks expecting the fed to pivot, so they can get better returns lending that money out rather than using it for RR ops. Lock long term high rates, lending money out, now.
Guessing this is front-running the fed.
Publishing to keep an eye on it.
IMO, Fed pivot != bullish. It means they likely overshot their desired outcome. Fed halting to re-analyze would be the best outcome in my eyes.
