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Why Foreign Investors Cooled On U.S. Debt

Odd Lots

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Navigating Yield Curve Inversion and Treasury Market Dynamics

This chapter explores the intricacies of yield curve inversion in the context of post-Basel III regulations and their impact on U.S. Treasury demand. It highlights the pivotal role of primary dealers and the repo market stress, examining how these factors influence the Federal Reserve's interest rate policy. Additionally, the discussion sheds light on liquidity challenges faced by banks and the implications for market stability amid regulatory changes.

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