Weak Jobs Data Will Surprise Market, Trigger Rally in Bonds and Stocks 9/2/22

[Jorma]

4 hours ago, DrStool said:

RRPs are 2.3%.

Darn, I've been harping on that .5% which I looked up somewhere and it said, yes, .5%.  So now it makes sense. No bother with bid and ask on TBill transactions.   

Still, without that money in RRP's TBill rates would be embarrassingly low unless they issued a lot more of them.  Yes they have started now, a little. Obviously, whatever the reason, the Fed wants the money in RRP's.

[DrStool]

16 hours ago, Jorma said:

Still, without that money in RRP's TBill rates would be embarrassingly low unless they issued a lot more of them.  Yes they have started now, a little.

$190 billion in August is a tsunami. So why has no cash left the RRP fund? That's the question. 

[MisFit Kid]

I hear the bail-out a comin', it's rolling 'round the bend
And I ain't seen any honesty since I don't know when
I'm stuck in CB prison, and Crime keeps draggin' on
But that bail-out keeps a rollin' on down to San Antone

I bet there's rich folks eating in a fancy dining car
They're probably drinkin' coffee and smoking big cigars
Well they know I had it coming, I know I can't be free
But those people keep a-movin'
And that's what tortures me

Well if they freed me from this prison
If that bail-out train was mine
I bet I'd move it on a little farther from the line
Far from CB prison, that's where I want to stay
And I'd let that lonesome whistle blow my blues away

[Jorma]

16 hours ago, DrStool said:

$190 billion in August is a tsunami. So why has no cash left the RRP fund? That's the question. 

I say because the Fed doesn't want it to come out and drive TBill rates down, now. Later probably but not now. 

 

[DrStool]

8 hours ago, Jorma said:

I say because the Fed doesn't want it to come out and drive TBill rates down, now. Later probably but not now. 

 

It's a voluntary deposit by the holders. The Fed doesn't force them to stay in. MMFs can deploy the cash in T-bills if they want, although they may need shorter duration than currently available.  Other non MMF holders can deploy the cash anywhere that's legal for them.