money markets once again point to calm. SOFR climbs above Fed Funds, but this is down to quarter-end pressures rising (and soon to fall). a FHLB monitor has now been added and more sections to follow
It seems like we were in the same situation last year. In December 23, January 24, the SOFR was reach almost to 5.4% with $200 billion of window dressing, but strangely enough, there's still a excess money in the RRP, isn't there?
Hi Conks, thanks for giving us this update. What does it mean when SOFR < EFFR and SOFR > EFFR, is it SOFR decided by market dynamics, or the FED has any control over it?
SOFR < EFFR means market markets are functioning correctly. secured rates should trade below unsecured rates reflecting the risk. SOFR > EFFR generally means limited cash available in the repo market.
Why did the DVP repo rate reach 5.3%? Does it mean nothing?
centrally-cleared repo market makers charging more on quarter end to account for window dressing (I'm writing about this soon)
It seems like we were in the same situation last year. In December 23, January 24, the SOFR was reach almost to 5.4% with $200 billion of window dressing, but strangely enough, there's still a excess money in the RRP, isn't there?
Hi Conks, thanks for giving us this update. What does it mean when SOFR < EFFR and SOFR > EFFR, is it SOFR decided by market dynamics, or the FED has any control over it?
SOFR < EFFR means market markets are functioning correctly. secured rates should trade below unsecured rates reflecting the risk. SOFR > EFFR generally means limited cash available in the repo market.