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Treasury General Account: Difference between revisions
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Different Scenarios it could play out? | Different Scenarios it could play out? | ||
# Liquidity coming from Reserve Repo | # '''Liquidity coming from Reserve Repo''' | ||
Fed’s Reverse Repo facility stands at 2.1 trillion, and offers a reward of 5.05. <ref>https://www.newyorkfed.org/markets/desk-operations/reverse-repo</ref> | |||
Money market funds (MMF) the primary user of the Reverse Repo Facility have historically been the big buyers of T-bills <ref>https://www.sec.gov/files/mmfs-treasury-market-090122.pdf</ref>. And there is a prevalent belief among analyst if a significant portion of U.S. Treasury securities is funded by (RRP) balances, it would have no major effect on risk assets, such as equities. | |||
Conditions that are needed for this? | |||
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