DrStool Posted April 5, 2022 Author Report Share Posted April 5, 2022 2-3 day cycle projection 4530-35 Link to comment Share on other sites More sharing options...
DrStool Posted April 5, 2022 Author Report Share Posted April 5, 2022 47 minutes ago, DrStool said: 2-3 day cycle projection 4530-35 Definitely at least 4530. Link to comment Share on other sites More sharing options...
potatohead Posted April 5, 2022 Report Share Posted April 5, 2022 What do you make of the RRP not going down? Is it a collateral issue that is keeping money in RRP or the idea that RRP is benefiting directly as Fed hikes rates. Meaning US treasuries may not see the same percentage move up in rate hikes as RRP because demand for US Treasuries could effect its day to day pricing? Link to comment Share on other sites More sharing options...
DrStool Posted April 5, 2022 Author Report Share Posted April 5, 2022 21 minutes ago, potatohead said: What do you make of the RRP not going down? Is it a collateral issue that is keeping money in RRP or the idea that RRP is benefiting directly as Fed hikes rates. Meaning US treasuries may not see the same percentage move up in rate hikes as RRP because demand for US Treasuries could effect its day to day pricing? Yep, they're sitting on it. Discussed here: https://liquiditytrader.com/money/FederalRevenuesProTrader/fedrevs040222.pdf Page 6 Call it fear, call it prudence, any way you slice it, it's bearish. For everything. Link to comment Share on other sites More sharing options...
Jorma Posted April 5, 2022 Report Share Posted April 5, 2022 I had thought the RRP rate was 0.5% but it was .05 % I guess. They raised it to 0.3% last week. I mean I think that's right. So if .05% was enough to attract $1.6TN little wonder the total is rising again. Link to comment Share on other sites More sharing options...
DrStool Posted April 5, 2022 Author Report Share Posted April 5, 2022 1 hour ago, DrStool said: Definitely at least 4530. 2-3 day cycle projection drops to 4515. Link to comment Share on other sites More sharing options...
DrStool Posted April 5, 2022 Author Report Share Posted April 5, 2022 21 minutes ago, Jorma said: I had thought the RRP rate was 0.5% but it was .05 % I guess. They raised it to 0.3% last week. I mean I think that's right. So if .05% was enough to attract $1.6TN little wonder the total is rising again. They could ladder 13 week bills at 0.55. Today that jumped to 0.71. It's not about "attracting." I've described it as a forced march. It's about the $1.6 trillion in T-bill paydowns last year with a couple hundred billion more on the way right now. The Fed created the RRP as a super money market fund for money market funds that had nowhere to put that $1.6 trillion that the Treasury stuffed back into their pockets. 4 week bills are at 0.17. So, yeah, money managers like it. Why not. It's like holding cash in the vault and getting interest on it. Link to comment Share on other sites More sharing options...
Jorma Posted April 5, 2022 Report Share Posted April 5, 2022 Why 5 minutes ago, DrStool said: They could ladder 13 week bills at 0.55. Today that jumped to 0.71. It's not about "attracting." I've described it as a forced march. It's about the $1.6 trillion in T-bill paydowns last year with a couple hundred billion more on the way right now. The Fed created the RRP as a super money market fund for money market funds that had nowhere to put that $1.6 trillion that the Treasury stuffed back into their pockets. 4 week bills are at 0.17. So, yeah, money managers like it. Why not. It's like holding cash in the vault and getting interest on it. Why raise the RRP rate? I get raising the RRP rate should raise bill rates so fits with the story that the Fed is "raising rates". Which is all well and good I suppose but it's a gigantic subsidy. $5bn/yr by my math, going not to the Treasury but to institutions and their investors Link to comment Share on other sites More sharing options...
DrStool Posted April 5, 2022 Author Report Share Posted April 5, 2022 51 minutes ago, Jorma said: Why Why raise the RRP rate? I get raising the RRP rate should raise bill rates so fits with the story that the Fed is "raising rates". Which is all well and good I suppose but it's a gigantic subsidy. $5bn/yr by my math, going not to the Treasury but to institutions and their investors It is a subsidy. And so is IOER. The worst part of it is that the Fed literally gave them the cash on which it now pays them interest. Talk about welfare queens. Jamie Dimon is the biggest welfare queen of all. All the bankers are. Bloodsucking parasites. Link to comment Share on other sites More sharing options...
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