Monday , June 24 2024
Home / Mike Norman Economics / Month end settlements

Month end settlements

Summary:
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:

Dean Baker writes We can’t have a new paradigm as long as people think the old one was free-market fundamentalism

Angry Bear writes Medicare Advantage Battling CMS over Compensation

Bill Haskell writes Traveling to Visit Brother

Angry Bear writes “Trump’s latest notion is both economically and fiscally illiterate”

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…







Mike Norman
Mike Norman is an economist and veteran trader whose career has spanned over 30 years on Wall Street. He is a former member and trader on the CME, NYMEX, COMEX and NYFE and he managed money for one of the largest hedge funds and ran a prop trading desk for Credit Suisse.

Leave a Reply

Your email address will not be published. Required fields are marked *