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Negative bill supply and its impact on QT timing
This chapter explores the relationship between negative bill supply and quantitative tightening (QT). It discusses how the net negative bill supply delays the urgency around QT and explains how the money seeking a home may go back into the reverse repurchase agreement (RRP). The chapter also touches on the issue of Cora, the persistent deviation of short-term interest rates from target, and speculates on the impact of BA runoff and reinvestment back into repo on Cora.