The Effects of Dealer Positioning on Liquidity

The QT and the drag on liquidity that the Fed has supposed to have been doing, which has a much more direct effect to markets in terms of liquidity. There's really been counteracted by several things, not just the deposit insurance that we have recently given to banks. Our estimation is that as we move forward here, we'll begin to see a lot of unwinding of not only the deposit insurance effects, but also importantly, the refilling of the Treasury General account. Once we get past this debt ceiling, so ironically, everybody's worried about the debt ceiling, I think the great irony of all this is ultimately what will be a sell the event we think.

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