What we are seeing at present is only the latest stage of a widening gulf between sober policymaking and a body of economic theory divorced from the realities of human action...
The need for the Fed to shove billions into the repo market to keep that market’s interest rate near the Fed’s target shows the Fed is losing its power to control the price of money...
"I write about the Repo market every day. As a service to our clients, I decided to put everything I know about the Repo market collapse down on paper. So here it is!" - Scott Skyrm, Curvature Securities
"I want to emphasize that growth of our balance sheet for reserve management purposes should in no way be confused with the large-scale asset purchase programs that we deployed after the financial crisis..."
Overall, a solid if not stellar auction, one which had no impact on the yield curve, with the 10Y last trading at 1.5374%, up modestly from session lows of 1.51%.
"...investor expectations CONTINUE to expect a DELAY to the new tranche of US tariffs in order to keep discussions at least partially 'thawed', which means that there remains significant downside risk still from here..."
