9 Comments
Jun 21Liked by Concoda

Hi Conks, I have a question in relation to the Foreign Repo. Is this actually QE like scenario, where the FED is just lending bills to other CBs to have dollar liquidity and if the actual Foreign RRP is increasing why the dollar doesn't have weakness?

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no QE here

the FRP is a temporary swap of dollars for Treasuries, not an outright purchase by other central banks

no money is created

instead the Fed swaps reserves for RRPs on its balance sheet

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Jun 12Liked by Concoda

After the BTFP execution, the volume of US Treasuries in the repo market plummeted.

Do you have any comments on this, as it seems that US Treasuries held in the BTFP should return to the market until next March?

I'd really like to hear what conks has to say.

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"the volume of US Treasuries in the repo market plummeted."

do you have a source?

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Jun 13Liked by Concoda
author

i don't see a big connection between those two

maybe some collateral was pledged to the BTFP and is now being deployed in repo but the amount will be small compared to the large drawdown in that chart

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Jun 18Liked by Concoda

Thanks!

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Jun 12Liked by Concoda

I would have thought RRPs would be nearly zero by now. Hmm.

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repo rates need to rise

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