Treasury Bills Trading Below Fed's RRP 'Floor' [Eurodollar University, Ep. 207]

Eurodollar University · Mar 28, 2022 · 28m

The Federal Reserve's rate hike increased the reverse repo program rate, the so-called rate "floor". But why then are the 4- and 8-week US Treasury Bills trading BELOW the floor? Because there's a collateral shortfall. A monetary deflation perhaps?

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The Fed Inadvertently Adds To Our Ironclad Collateral Case Which Does Seem To Have Already Included A ‘Collateral Day’ (or days): https://bit.ly/3wFfRv2

Alhambra Investments Blog: https://bit.ly/2VIC2wWlin

RealClear Markets Essays: https://bit.ly/38tL5a7

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Alhambra YouTube: https://bit.ly/2Xp3roy…