as the debt limit deal looms, SOFR moves above ON/RRP, meaning markets are dictating repo rates, and we'll likely see more RRP drain, as MMFs fund leveraged investors and invest in superior yielding bills
secured lending daily volume soars over $1.5 trillion as the SOFR transition nears and market volatility rises, meanwhile global "liquidity" markers deteriorate
SOFR (repo rates) fall, paying the same rate as the RRP. Secured lending volumes have peaked for now, partly because SOFR equaling RRP means no premium to lend to leveraged investors over the Fed
As the much-hyped "X-date" approaches, the TGA continues its decline along with the debt ceiling headroom from extraordinary measures. Still, minus short-term bills, money markets remain tranquil
Great Financial Tightening trades continue to perform, minus short tech, of course. Treasury mechanics deep dive and debt ceiling analysis coming soon...
Stocks, dollars, and bonds remain fairly flat since April. Treasury announces buybacks for 2024, hinting at liquidity issues we talked about in "The Great Sovereign Debt Intervention Is Here"...