by Tyler Durden
Thursday, May 13, 2021 - 07:45 PM
For the second time in three weeks, the US Treasury sold $40BN in 4-week bills at a price of 100.000% representing a rate of 0.00%.
To be sure, Bills had printed at 0.000% at auction previously, but that was largely during the reserve glut days of 2015.
So why now? The same reason usage of the Fed s Reverse Repo facility has soared in recent weeks from zero to over $100 billion at the end of April, hitting a whopping $235 billion today.
.as investors choose to directly transact with the Fed - where only positive rates are allowed - rather than the open market where collateral rates have frequently been negative in recent weeks as Curvature s Scott Skyrm explained in this note from April 26:
by Tyler Durden
Thursday, Apr 29, 2021 - 12:48 PM
While 4-week Treasury Bill rates had dipped negative on occasion over the past several months, the last time the 4-Week Bill priced at a 0.000% investment rate was during the post-covid crash scramble, when the 4-Week printed at 0.000% on the March 26 auction.
Until today that is, because moments ago,
the Treasury sold $40BN in 4-week bills at a price of 100.000% representing a rate of 0.00%.
To be sure, Bills had printed at 0.000% at auction previously, but that was largely during the reserve glut days of 2015.
So why now? The same reason usage of the Fed s Reverse Repo facility has soared in recent weeks for nothing to over $100 billion.
Money Market Operations as on April 19, 2021
Targeted Long Term Repo Operations Fri, 27032020 1092 Fri, 24032023 12,236.00 4.40 Fri, 03042020 1095 Mon, 03042023 16,925.00 4.40 Thu, 09042020 1093 Fri, 07042023 18,042.00 4.40 Fri, 17042020 1091 Thu, 13042023 20,399.00 4.40 6. Targeted Long Term Repo Operations 2.0 Thu, 23042020 1093 Fri, 21042023 7,950.00 4.40 7.PTI | Mumbai | Updated: 20-04-2021 15:26 IST | Created: 20-04-2021 15:25 IST
Money Market Operations as on April 19, 2021 (Amount in crore, Rate in Per cent) VOLUME Weighted MONEY MARKET (ONE LEG) Average Rate Range A. Overnight Segment 470,334.69 3.19 0.01-3.50 I. Call Money 11,468.94 3.23 1.90-3.50 II. TripartyRepo 347,677.00 3.22 3.03-3.35 III. Market Repo 109,846.75 3.09 0.01-3.45 IV. Repo in Corporate Bond 1,342.00 3.39 3.35-3.40 B. Term Segment I. Notice Money 384.50 3.01 2.50-3.35 II. Term Money@@ 494.00 - 3.10-3.85 III. TripartyRepo 152.15 3.15 3.15-3.15 IV. Market Repo 2,895.00 3.23 0.01-3.32 V. Repo in Corporate
RBIâs policy stance very balanced: India Inc. After the RBI announced that it is maintaining the status quo with regard to its policy stance, India Inc. has reacted very positively to the developments. Here are some of the reactions.
Apr 7, 2021
Despite a pause in rates, RBI s latest policy does enough to boost liquidity and revive growth engines.
Image: Sanjay Rawat
The Reserve Bank of India today announced its monetary policy, wherein it kept the repo rate unchanged at 4%, and retained its accommodative policy stance.
India Inc. has reacted very positively to the developments. Here are a few of such reactions.
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