Jorma Posted September 4, 2022 Report Share Posted September 4, 2022 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. Link to comment Share on other sites More sharing options...
DrStool Posted September 5, 2022 Author Report Share Posted September 5, 2022 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. Link to comment Share on other sites More sharing options...
MisFit Kid Posted September 5, 2022 Report Share Posted September 5, 2022 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 Link to comment Share on other sites More sharing options...
Jorma Posted September 6, 2022 Report Share Posted September 6, 2022 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. Link to comment Share on other sites More sharing options...
DrStool Posted September 6, 2022 Author Report Share Posted September 6, 2022 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. Link to comment Share on other sites More sharing options...
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