Soft Funding During December 2012, the general collateral Repo rate was steadily averaging 8 basis points above the federal funds rate. Since the beginning of January, that all changed and GC Repo has averaged about flat to fed funds. Why? It’s not the first time the market expe
January 22, 2013 Department of the Treasury Bureau of the Public Debt Government Securities Regulations Staff 799 9th Street NW. Washington, DC 20239-0001 Sale and Issue of Marketable Book-Entry Treasury Bills, Notes, and Bonds 31 CFR Part 356 [Docket ID: FISCAL-BPD-201
The Debt Ceiling showdown is upon us once again. There have been several heated battles in the past, the worse being in November, 1995 and July, 2011. Currently, there are estimates that we’ll hit the Debt Ceiling anywhere between mid-February to early March, however, it’s
Let’s Start With The Numbers The United States has a massive trade deficit with China, that’s something we’re all familiar with. China has accumulated a large amount of U.S. Treasury securities, and that’s another thing we’re all familiar with. The two th
QE2 After the November, 2010 FOMC meeting, the Fed announced the second Quantitative Easing program. QE2, as it’s affectionately known, consisted of purchasing $600 billion U.S. Treasury securities and reinvesting the principal portion of maturing securities of their portfolio.
I try to avoid politics in my “market” commentaries, but it’s Christmas week and the markets are slow, so this will be an exception. Plus, it’s an interesting story and idea. Anyone who knows me well, knows that I’m very much a “student of history,&
Background The Treasury Department is considering the issuance of a Floating Rate Note (FRN). This topic was brought up before and I now expect a FRN U.S. Treasury will become a reality. The Treasury is soliciting comments about the new issue to be submitted by January 22, 2013. I bel
Though Central Counterparties (CCP’s), like LCH.Clearnet and Fixed Income Clearing Corp began to re-emerge 15 years ago, they are not a new invention. They existed over 150 years ago, during the “National Banking Era” in the U.S. in the 19th century. At this