Saturday , October 19 2019

Nice Work

Summary:
According to DTCC’s repo #s, there’s a good chance fed funds was outside the range today, too. It was put at 3% this afternoon despite this morning’s FRBNY operation, which is still higher than Monday when EFF sat right at the upper bound.  Repo Op Tues: GC repo (UST) 6% despite .15 bln.Repo Op Wed: GC repo (UST) still 3% despite .05 bln. Nice work. https://t.co/lKoiQUPAE6 — Jeffrey P. Snider (@JeffSnider_AIP) September 18, 2019 In case it wasn’t clear, I was being sarcastic in the tweet above. Despite these being repo operations, you can’t see any difference in repo. As the bottleneck passes, I’m sure Powell will declare it a success when it has been revealed as anything but one. That’s why this calendar bottleneck matters; it shows that when push comes to shove, the Fed’s got

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According to DTCC’s repo #s, there’s a good chance fed funds was outside the range today, too. It was put at 3% this afternoon despite this morning’s FRBNY operation, which is still higher than Monday when EFF sat right at the upper bound. 

In case it wasn’t clear, I was being sarcastic in the tweet above. Despite these being repo operations, you can’t see any difference in repo.

As the bottleneck passes, I’m sure Powell will declare it a success when it has been revealed as anything but one. That’s why this calendar bottleneck matters; it shows that when push comes to shove, the Fed’s got nothing. The global dollar system in a weakened systemic state, what happens if something really does start to go wrong – not just a calendar bottleneck but a very real collateral bottleneck? 

Nice Work

Jeffrey P. Snider
As Head of Global Investment Research for Alhambra Investment Partners, Jeff spearheads the investment research efforts while providing close contact to Alhambra’s client base. His company is a global investment adviser, hence potential Swiss clients should not hesitate to contact AIP

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