Serving the Quantitative Finance Community
Follow the money they say
A good start is to follow these > 2 trillion dollars in ON RRP that now has left FED
Re: Follow the money they say
The SOFR–IORB spread is now flashing red, signaling growing liquidity stress.
Normally the FED could have lowered the ON RRP rate so that big financial institutions would withdraw deposits and put them to work. But as posted above the ON RRP buffer is already gone.
Sure FED can stop their QT, or they can use other tools, we will see if they are fast enough..
Or what do you all think will happen? How are your hedges? Well trimmed?
[attachment=0]Screenshot 2025-11-03 at 22.10.53.png[/attachment][/font]
Normally the FED could have lowered the ON RRP rate so that big financial institutions would withdraw deposits and put them to work. But as posted above the ON RRP buffer is already gone.
Sure FED can stop their QT, or they can use other tools, we will see if they are fast enough..
Or what do you all think will happen? How are your hedges? Well trimmed?
[attachment=0]Screenshot 2025-11-03 at 22.10.53.png[/attachment][/font]
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Re: Follow the money they say
well FED injected 29 billion in the system to keep it afloat
Re: Follow the money they say
The FED has now injected about 125 billion last few days. The QT has halted....biggest injections since 2020