US short term rates going negative otherwise.... if the stimmy $ are quickly saved (deficit increases) I don’t see the matter getting smaller..... I have a hard time seeing this as their “inflationary!”...
Updating this chart to include today's bar... seems that the RRP facility (yielding 0%) may now be becoming the marginal ST asset of choice. If this continues it is only a matter of time before counterparties reach their position limits and it must be expanded or fully uncapped. https://t.co/JyXBJLKKog pic.twitter.com/4Utsf1UD6p
— DC (@AnalystDC) March 11, 2021
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