Posted on 12/21/2021 9:21:51 AM PST by Browns Ultra Fan
The amount of money that investors are parking at a major central bank facility climbed to yet another all-time high as supply-demand imbalances continue to dog U.S. dollar funding markets.
Eighty-one participants on Monday placed a total of $1.758 trillion at the Federal Reserve’s overnight reverse repurchase agreement facility, in which counterparties like money-market funds can place cash with the central bank. That surpassed the previous record volume of $1.705 trillion from Dec. 17, New York Fed data show.
Demand for the so-called RRP has climbed further as principal and interest payments from government-sponsored enterprises has entered short-end funding markets. However, that cash is expected to exit the overnight space by the end of the week as the Treasury ramps up its issuance of Treasury bills now that Congress has increased the debt limit.
Overall volume has been rising this year as a flood of cash continues to overwhelm the U.S. dollar funding markets due to central-bank asset purchases and the drawdown of the Treasury’s cash account, which is pushing reserves into the system. The larger takeup looks set to persist even as the Fed tapers its asset-purchase program — something it began this month — because the supply-demand imbalances in short-end securities are likely to persist.
Then we have the Turkish Lira volatility hitting an all-time high.
And finally we have the US Current Account Balance rising to levels last seen in 2006 just after the peak of the US housing bubble.
Mele Kalikimaka!
(Excerpt) Read more at confoundedinterest.net ...
Can somebody please translate the article into English. I don’t speak banker-investor.
With all that cash they should just buy Turkey.
Turkey is usually on sale this time of year, so yeah.
“Can somebody please translate the article into English. “
Then you would understand it and would defeat their goal of obfuscation and wanting to seem so much more intelligent and knowledgeable than you.
The term that most irks me is “quantitative easing”, which translates to “money printing” in regular English.
Does this mean, not counting inflation, it will now COST me to leave money in a money market acct?
Lots of cash laying around at the banks. Lots of money in circulation. That means more inflation. I think that’s the message.
It ain’t cool being no jive turkey so close to Thanksgiving.
Just bein’ a little cute is all.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.