This is exactly why there_s so much liquidity out there. FED promised QT but they are doing QE.
Banks are using #BTFP getting $1 for a 50c valued bonds.
They need to pay 5%/yr for the loan, so they_re buying RRP, resulting in net liquidity increase. Hence, market rips higher.
Cette page peut inclure du contenu de tiers fourni à des fins d'information uniquement. Gate ne garantit ni l'exactitude ni la validité de ces contenus, n’endosse pas les opinions exprimées, et ne fournit aucun conseil financier ou professionnel à travers ces informations. Voir la section Avertissement pour plus de détails.
This is exactly why there_s so much liquidity out there. FED promised QT but they are doing QE.
Banks are using #BTFP getting $1 for a 50c valued bonds.
They need to pay 5%/yr for the loan, so they_re buying RRP, resulting in net liquidity increase. Hence, market rips higher.