Money Market Brief

As described in the Transitory Pause, many forms of "liquidity" have driven risk assets higher. We see this with a lower MOVE, declining Treasury fails, healthy repo volumes, and lower funding stress

If you’ve just joined us, or in case you missed it, we turned “pro”. Again, a big thanks to everybody for your readership. Our latest pieces are below. (If you’re a free reader, hitting like on our articles is the best way to help us grow — and is much appreciated!)

The Fed's Hidden Put

The Transitory Pause

---

In our next piece, we’ll go even deeper into the repo market and explain its inner workings. It will be visualization heavy! But first, a money market brief.

---

---

note: a useful but incomplete view of liquidity

note: a useful but incomplete view of liquidity

bonus: the cross-currency basis for JPY and EUR, proxies for dollar shortages, have narrowed, showing lower funding stress in the financial system