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.
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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.