This is exactly why there_s so much liquidity out there. FED promised QT but they are doing QE.
Banks are using #BTFP getting $1 for a 50c valued bonds.
They need to pay 5%/yr for the loan, so they_re buying RRP, resulting in net liquidity increase. Hence, market rips higher.
قد تحتوي هذه الصفحة على محتوى من جهات خارجية، يتم تقديمه لأغراض إعلامية فقط (وليس كإقرارات/ضمانات)، ولا ينبغي اعتباره موافقة على آرائه من قبل Gate، ولا بمثابة نصيحة مالية أو مهنية. انظر إلى إخلاء المسؤولية للحصول على التفاصيل.
This is exactly why there_s so much liquidity out there. FED promised QT but they are doing QE.
Banks are using #BTFP getting $1 for a 50c valued bonds.
They need to pay 5%/yr for the loan, so they_re buying RRP, resulting in net liquidity increase. Hence, market rips higher.