In order to participate in the GunBroker Member forums, you must be logged in with your GunBroker.com account. Click the sign-in button at the top right of the forums page to get connected.
Options
Fed's may begin buying their own Treasuries again
President Trump moans and complains because he can't get free interest money (0%) to get reelected while The Federal N.YReserve tries to save
the day now with an interjection of emergency funds to lower short term rates from bank to bank.
serf
https://www.thestreet.com/investing/fixed-income/ny-fed-doubles-down-on-repo-intervention-as-bank-cash-crisis-rattles-markets-15094169
Furthermore, with the suspension of the debt ceiling earlier this summer, Treasury borrowing projections estimate a further $814 billion in new bonds will need to be absorbed by the market between now and the end of the year, placing even more stress on the level of excess reserves in the Fed system.
https://news.yahoo.com/ny-fed-pump-75-bn-money-markets-daily-154943871.html More paper chase with funny money!
The New York Federal Reserve Bank said Friday it will inject billions into the US financial plumbing on a daily basis for the next three weeks in an effort to prevent a spike in short-term interest rates.
The Fed will offer up to $75 billion a day in repurchase agreements -- exchanging secure assets for cash for very short periods -- through October 10, it said in a statement.
In addition, it will offer three 14-day "repo" operations of at least $30 billion each.
Banks have struggled in recent days to find the cash needed to meet reserve requirements which has pushed up short-term borrowing rates, prompting the New York Fed to pump billions into US money markets with repo operations over the past four days.
the day now with an interjection of emergency funds to lower short term rates from bank to bank.
serf
https://www.thestreet.com/investing/fixed-income/ny-fed-doubles-down-on-repo-intervention-as-bank-cash-crisis-rattles-markets-15094169
Furthermore, with the suspension of the debt ceiling earlier this summer, Treasury borrowing projections estimate a further $814 billion in new bonds will need to be absorbed by the market between now and the end of the year, placing even more stress on the level of excess reserves in the Fed system.
https://news.yahoo.com/ny-fed-pump-75-bn-money-markets-daily-154943871.html More paper chase with funny money!
The New York Federal Reserve Bank said Friday it will inject billions into the US financial plumbing on a daily basis for the next three weeks in an effort to prevent a spike in short-term interest rates.
The Fed will offer up to $75 billion a day in repurchase agreements -- exchanging secure assets for cash for very short periods -- through October 10, it said in a statement.
In addition, it will offer three 14-day "repo" operations of at least $30 billion each.
Banks have struggled in recent days to find the cash needed to meet reserve requirements which has pushed up short-term borrowing rates, prompting the New York Fed to pump billions into US money markets with repo operations over the past four days.