Have to see if this large month end settlement pattern continues…. It may be that first of the month fiscal transfers are getting so large these days that they are destabilizing reserve assets at Depositories… so Treasury might be scheduling most of the settlements the day before to reduce reserve balances within the same regulatory period as the first of the month…Treasury issuance is not “borrowing!” despite what MMT asserts…Treasury issuance is skewed this month. There are net paydowns and one large settlement on month-end. If we exclude month-end, there's a net paydown of 8B. O/N rates should head lower throughout the month. Every net paydown will put additional downward pressure on O/N rates pic.twitter.com/3fTwWGMwmR— Scott Skyrm (@ScottSkyrm) May 2, 2024
Topics:
Mike Norman considers the following as important:
This could be interesting, too:
John Quiggin writes The edge of extinction
Lars Pålsson Syll writes The psychopathy of Ayn Rand
NewDealdemocrat writes May CPI continued to be all about shelter
Merijn T. Knibbe writes Deaths of infants and young children in Gaza. A fact-based estimate.
Have to see if this large month end settlement pattern continues…. It may be that first of the month fiscal transfers are getting so large these days that they are destabilizing reserve assets at Depositories… so Treasury might be scheduling most of the settlements the day before to reduce reserve balances within the same regulatory period as the first of the month…
Treasury issuance is not “borrowing!” despite what MMT asserts…
Treasury issuance is skewed this month. There are net paydowns and one large settlement on month-end. If we exclude month-end, there's a net paydown of $108B. O/N rates should head lower throughout the month. Every net paydown will put additional downward pressure on O/N rates pic.twitter.com/3fTwWGMwmR
— Scott Skyrm (@ScottSkyrm) May 2, 2024