while the Fed dismisses the debt ceiling as a reason to stop reducing its balance sheet, funding pressures keep building in money markets. regardless, liquidity remains more than ample
Suggest using a more layman way of saying things like "...bases become tighter ie more positive" ... and why is xccy bases more "tighter" when more usd flows into US and what this means in terms for banks?
I like the fact that you link explainers because I keep forgetting what each thing means🤣🤣
😎😆
Suggest using a more layman way of saying things like "...bases become tighter ie more positive" ... and why is xccy bases more "tighter" when more usd flows into US and what this means in terms for banks?
its counterintuitive, but tighter means a less negative reading and is not referring to liquidity
for banks, it means they are settling global dollar payments without much friction
Thank you.
Quick (maybe unrelated) question - how will the debt ceiling affect auctions/issuance when it's reinstated in January?
Cheers.
dramatic increase in bill issuance
Wouldn't this make the case for a secular shift into Value, Commodities, Materials, Energy, Small Caps, and potentially EM?