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Introduction
Alfred Stenor: We will see a lot of bad takes on dollar liquidity now that the debt ceiling soap opera has ended. T bills are much easier to absorb for the private sector than long duration bonds, he says. Money market funds have over two trillion dollars parked at the reserve rate of facility at the Federal Reserve and they can use this money to buy T bills in order to replenish their wall chest. A bunch of institutional accounts are looking out for this tip as a safe way to park their dollars because they don't have access to the Fed.