money market

The T-bill Lie: Even More Completely Full of It

By |2019-05-03T16:37:34-04:00May 3rd, 2019|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

When all this federal funds business started, the effective federal funds (EFF) rate was pretty well established at 16 bps above the RRP “floor.” It had been that way, consistently, all throughout Reflation #3, all throughout 2017. So consistent, that dependable spread was a very solid indication of reflation. As of yesterday, EFF was…16 bps [...]

What Does It Mean If The Fed Might (Have To) Be Ready To Move Past IOER?

By |2019-03-01T19:33:46-05:00March 1st, 2019|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

More than any conundrum in the bond market, the Federal Reserve has one on its hand much closer to home. Its home, anyway. The effective federal funds rate (EFF) has been stapled to IOER for each of the last fifty trading days. No variation whatsoever. EFF had converged with IOER back in October. A lot [...]