How would a large increase in Reverse Repo affect the US dollar? Can anyone answer that question? TIA
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Posted 30 July 2021 - 08:26 AM
its crazy we have a -;117 real yield. So they rush to the desk for the charity yield. The majority of the lending there is overnight and the rest short duration, so I believe reverse repos are just doing what they were designed to do, provide a little more yield to the best borrowers. It keps the smart money in a smart play, not the insane chase for yield going on in the rest of the market. Just my opinion.
Posted 30 July 2021 - 09:22 AM
With 3-month AA financial commercial paper yielding 9 basis points, and stubbornly staying under 13 bp since May, I think we can expect all kinds of weird things.