
Steno's Signals: Liquidity Will Soon Be Drier than a Martini
Real Vision: Finance & Investing
00:00
Can the US Treasury Primarily Issue Bills to Replenish the TGA?
I agree with Michael and Raoul Powell on say the 6, 9, 12 months output for liquidity. This is a tactical view covering May-June because we have these technicalities leading to a shrinking liquidity picture short-term. We simply need a crisis to unfold before QE can get back in the limelight. If Janet Yellen decided to issue only T-bills, then we would have a more or less liquidity neutral replenishment of the Treasury general account. It wouldn't be the typical move from the US Treasury. They typically try to spread their duration risk across the curve.
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