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Unusual Whales Pod Ep. 24: FEDERAL PAUSES RATE HIKES, The US Dollar Currency Dominance, Liquidity, and Refunding the Treasury

Unusual Whales

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The Fed's Reflexivity to Liquidity Depletion

The treasury is trying to manage this by adjusting its issuance one to be a bit slower than expected like last fair noted they had a target of five hundred fifty by the end of this month now it's 425 much more manageable and it gives the market more time to adjust. The second thing that they did is i think they're trying to adjust their bill issuance such that more of liquidity will be drained out of the rp rather than the baking sector. They're doing this by revising their bill issuance to be shorter in tenor um so for example they have a new set of regular cash management bills that mature is uh in six week increments  this is better for the money market funds because

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