Hmmm_老虎社区_美港股上老虎

2021-05-28

Hmmm

Half a Trillion Dollars Is Sitting at the Fed Earning Nothing<blockquote>五万亿美元坐在美联储一无所获</blockquote>

免责声明：上述内容仅代表发帖人个人观点，不构成本平台的任何投资建议。

精彩评论

我们需要你的真知灼见来填补这片空白

发表看法

{"i18n":{"language":"zh_CN"},"detailType":1,"isChannel":false,"data":{"magic":2,"id":134946889,"tweetId":"134946889","gmtCreate":1622203970341,"gmtModify":1634182894395,"author":{"id":3550798757796905,"idStr":"3550798757796905","authorId":3550798757796905,"authorIdStr":"3550798757796905","name":"howeixiong","avatar":"https://static.tigerbbs.com/fea539af5db0091afc3fa5280f22719a","vip":1,"userType":1,"introduction":"","boolIsFan":false,"boolIsHead":false,"crmLevel":11,"crmLevelSwitch":0,"individualDisplayBadges":[],"wearingBadges":[],"fanSize":2,"starInvestorFlag":false},"themes":[],"images":[],"coverImages":[],"title":"","extraTitle":"","html":"<html><head></head><body>Hmmm</body></html>","htmlText":"<html><head></head><body>Hmmm</body></html>","text":"Hmmm","highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":4,"repostSize":0,"favoriteSize":0,"link":"https://laohu8.com/post/134946889","repostId":1136464317,"repostType":4,"repost":{"id":"1136464317","kind":"news","pubTimestamp":1622202260,"share":"https://www.laohu8.com/m/news/1136464317?lang=zh_CN&edition=full","pubTime":"2021-05-28 19:44","market":"us","language":"en","title":"Half a Trillion Dollars Is Sitting at the Fed Earning Nothing<blockquote>五万亿美元坐在美联储一无所获</blockquote>","url":"https://stock-news.laohu8.com/highlight/detail?id=1136464317","media":"Bloomberg","summary":"(Bloomberg) -- There’s so much spare cash sloshing around U.S. funding markets that investors are ch","content":"(Bloomberg) -- There’s so much spare cash sloshing around U.S. funding markets that investors are choosing to park almost half a trillion dollars at the central bank -- earning absolutely nothing.<blockquote>(彭博社）--美国融资市场上有如此多的闲置现金，以至于投资者选择将近 5000 万亿美元存放在央行--却一无所获。</blockquote>Usage of the Federal Reserve’s reverse repo facility -- a mechanism that’s part of the central bank’s arsenal for helping to steer short-term interest rates -- surged on Thursday to an unprecedented $485.3 billion. And with the forces driving the dollar glut still some way from abating, that figure could climb further, adding fuel to an increasingly complex debate about what the Fed should do with its various tools to keep a rein on policy.<blockquote>美联储的逆回购工具--美联储帮助引导短期利率的机制--的使用量在周四激增至前所未有的4853亿美元。由于推动美元过剩的力量仍远未减弱，这一数字可能会进一步攀升，这加剧了一场日益复杂的辩论，即美联储应该如何利用其各种工具来控制政策。</blockquote>While the offering rate on the Fed reverse repo facility is 0%, there is a lack of alternative places to safely stash money for very short periods. On top of that, some of those -- like Treasury bills and market-based repurchase agreements -- have seen their rates fall at times to negative levels, meaning investors are essentially paying for the privilege of putting their money somewhere. Compared to that, 0% doesn’t seem so bad.<blockquote>虽然美联储逆回购工具的发行利率为0%，但缺乏在很短的时间内安全存放资金的替代场所。最重要的是，其中一些——例如国库券和基于市场的回购协议——的利率有时会降至负值水平，这意味着投资者基本上是在为将资金投入某个地方的特权买单。相比之下，0% 似乎并没有那么糟糕。</blockquote>The RRP facility, as it’s commonly called, is “the only safety valve” for the pressure that’s been building up in money markets, according to Gennadiy Goldberg, a senior rates strategist at TD Securities in New York. “It’s really just holding back the flood of cash coming.”<blockquote>道明证券（TD Securities）驻纽约高级利率策略师根纳季-戈德堡（Gennadiy Goldberg）表示，通常所说的 RRP 机制是应对货币市场压力的 “唯一安全阀”。“这实际上只是阻碍了大量现金的到来”。</blockquote>Taper Talk<blockquote>锥形谈话</blockquote>The massive buildup of dollars in the funding market is in part related to the Fed’s huge monthly bond-buying program, and is therefore providing fodder for the debate about just when and how quickly the Federal Reserve ought to begin dialing back its asset purchases. But the connection between the purchases and short-end dislocations is not straightforward. Many observers doubt that this as an issue that will substantially move the Fed’s position on tapering, and it is the prospects of sustained inflation and interest-rate hikes that are seen as the key drivers of that discussion.<blockquote>资金市场上美元的大量积累在一定程度上与美联储每月庞大的债券购买计划有关，因此也为美联储何时以及以多快的速度开始减少资产购买提供了辩论素材。但购买和短端错位之间的联系并不简单。许多观察家怀疑，这一问题是否会大幅改变美联储在缩减规模问题上的立场，而持续通胀和加息的前景被视为这一讨论的主要驱动力。</blockquote>“I don’t think tapering is going to solve this,” said Subadra Rajappa, a strategist at Societe Generale SA. “Tapering is only going to add to the confusion. If they taper asset purchases, it’s going to roil global markets.”<blockquote>“法国兴业银行（Societe Generale SA）策略师苏巴德拉-拉贾帕（Subadra Rajappa）说：”我认为缩减规模并不能解决这个问题。“缩减规模只会增加混乱。如果他们缩减资产购买规模，将会扰乱全球市场。”</blockquote>The enormous amount of fiscal stimulus being pumped into the economy is also playing a role in the glut, as is the need for the Treasury to curtail the amount of money it has on hand so it can meet a looming legal requirement on cash levels that is linked to the reinstatement of the federal debt ceiling.<blockquote>注入经济的大量财政刺激也在过剩中发挥作用，财政部需要减少手头的货币量，以便满足与恢复联邦债务上限相关的迫在眉睫的现金水平法律要求。</blockquote>Nowhere to Go<blockquote>无处可去</blockquote>This drawdown in the Treasury general account is not only boosting the amount of cash reserves in the system in search of a home, but the speed at which it’s happening also means there are fewer instruments for short-end investors to buy. That’s because one of the easiest ways to reduce the cash balance is to not issue as many Treasury bills -- the government’s shortest-term instruments -- when the old ones mature.<blockquote>财政部普通账户的这种提款不仅增加了系统中寻找归宿的现金储备，而且提款速度之快也意味着短期投资者可以购买的工具越来越少。这是因为减少现金余额最简单的方法之一就是在旧国库券到期时不要发行那么多国库券--政府的短期工具。</blockquote>Simply putting the cash to work in a bank account is also not a ready solution, with regulatory constraints spurring some banks to turn away deposits, which instead flow toward money-market funds and feed the abundance.<blockquote>简单地将现金存入银行账户也不是一个现成的解决方案，监管限制促使一些银行拒绝存款，这些存款反而流向货币市场基金并为过剩提供资金。</blockquote>Usage of the Fed’s RRP facility has now exceeded levels typically only seen at key dates in the funding calendar -- even though the current period is not typically a major crunch point. The previous record volume of $474.6 billion took place on Dec. 31, 2015, while the next biggest day was also on the final day of a year. Month-and quarter-end periods have also been known to show some signs of stress, so it’s a distinct possibility that usage will climb again on Friday, the final trading day of this month, although many observers doubt that it will stop there. Results of the next operation are set to be published around 1:15 p.m. Friday afternoon New York time.<blockquote>美联储的 RRP 工具的使用量现在已经超过了通常只有在资金日历的关键日期才会出现的水平--尽管当前时期通常不是主要的关键时刻。上一个创纪录的4746亿美元发生在2015年12月31日，而下一个最大的一天也是在一年的最后一天。众所周知，月末和季度末也会出现一些压力迹象，因此本月最后一个交易日周五使用量很有可能再次攀升，尽管许多观察家怀疑使用量是否会就此结束。下一次手术的结果将于下午1点15分左右公布。纽约时间周五下午。</blockquote>Relieving Pressure<blockquote>减压</blockquote>Indeed, some argue that the facility is doing exactly what it’s supposed to, and that is why the Fed recently increased the amount of business that each organization can do with it, as well as the accessibility of it to new counterparties.<blockquote>事实上，一些人认为该设施正在做它应该做的事情，这就是为什么美联储最近增加了每个机构可以使用该设施开展的业务量，以及新交易对手可以使用该设施。</blockquote>By providing a venue for funds, the Fed is relieving some of the downward pressure on front-end rates if everyone had to go into repo or T-bills. And that in turn enables them to keep their key benchmark, the effective fed funds rate, within its goalposts.<blockquote>通过提供资金场所，如果每个人都必须购买回购或国库券，美联储正在缓解前端利率的一些下行压力。这反过来又使他们能够将关键基准——有效联邦基金利率——保持在目标范围内。</blockquote>That rate is currently hovering around 0.06%, in the lower end of the Fed’s zero to 0.25% target range, but still acceptable to officials. A decline in other market-based front-end rates could once again bring to the fore talk of changes to so-called administered rates, the different levels that the Fed sets for excess reserve holdings and the RRP facility. But so long as the front-end remains in check, the Fed also has the option of standing pat.<blockquote>该利率目前徘徊在 0.06% 左右，处于美联储 0 至 0.25% 目标区间的下限，但官员们仍然可以接受。其他基于市场的前端利率的下降可能会再次引发关于所谓管理利率变化的讨论，即美联储为超额准备金持有和建议零售价工具设定的不同水平。但只要前端保持控制，美联储也可以选择袖手旁观。</blockquote>SocGen’s Rajappa doesn’t see a catalyst for them to shift IOER or RRP rates and said that even if the Fed did tweak them “there will still be demand for the reverse repo facility.”<blockquote>法国兴业银行（SocGen）的拉贾帕认为，他们没有改变 IOER 或 RRP 利率的催化剂，并表示即使美联储确实调整了利率，“对逆回购工具的需求仍将存在”。</blockquote>","source":"lsy1612507957220","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Half a Trillion Dollars Is Sitting at the Fed Earning Nothing<blockquote>五万亿美元坐在美联储一无所获</blockquote></title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 12.5px; color: #7E829C; margin: 0;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHalf a Trillion Dollars Is Sitting at the Fed Earning Nothing<blockquote>五万亿美元坐在美联储一无所获</blockquote>\n</h2>\n<h4 class=\"meta\">\n\nBloomberg2021-05-28 19:44\n\n</h4>\n</header>\n<article>\n(Bloomberg) -- There’s so much spare cash sloshing around U.S. funding markets that investors are choosing to park almost half a trillion dollars at the central bank -- earning absolutely nothing.<blockquote>(彭博社）--美国融资市场上有如此多的闲置现金，以至于投资者选择将近 5000 万亿美元存放在央行--却一无所获。</blockquote>Usage of the Federal Reserve’s reverse repo facility -- a mechanism that’s part of the central bank’s arsenal for helping to steer short-term interest rates -- surged on Thursday to an unprecedented $485.3 billion. And with the forces driving the dollar glut still some way from abating, that figure could climb further, adding fuel to an increasingly complex debate about what the Fed should do with its various tools to keep a rein on policy.<blockquote>美联储的逆回购工具--美联储帮助引导短期利率的机制--的使用量在周四激增至前所未有的4853亿美元。由于推动美元过剩的力量仍远未减弱，这一数字可能会进一步攀升，这加剧了一场日益复杂的辩论，即美联储应该如何利用其各种工具来控制政策。</blockquote>While the offering rate on the Fed reverse repo facility is 0%, there is a lack of alternative places to safely stash money for very short periods. On top of that, some of those -- like Treasury bills and market-based repurchase agreements -- have seen their rates fall at times to negative levels, meaning investors are essentially paying for the privilege of putting their money somewhere. Compared to that, 0% doesn’t seem so bad.<blockquote>虽然美联储逆回购工具的发行利率为0%，但缺乏在很短的时间内安全存放资金的替代场所。最重要的是，其中一些——例如国库券和基于市场的回购协议——的利率有时会降至负值水平，这意味着投资者基本上是在为将资金投入某个地方的特权买单。相比之下，0% 似乎并没有那么糟糕。</blockquote>The RRP facility, as it’s commonly called, is “the only safety valve” for the pressure that’s been building up in money markets, according to Gennadiy Goldberg, a senior rates strategist at TD Securities in New York. “It’s really just holding back the flood of cash coming.”<blockquote>道明证券（TD Securities）驻纽约高级利率策略师根纳季-戈德堡（Gennadiy Goldberg）表示，通常所说的 RRP 机制是应对货币市场压力的 “唯一安全阀”。“这实际上只是阻碍了大量现金的到来”。</blockquote>Taper Talk<blockquote>锥形谈话</blockquote>The massive buildup of dollars in the funding market is in part related to the Fed’s huge monthly bond-buying program, and is therefore providing fodder for the debate about just when and how quickly the Federal Reserve ought to begin dialing back its asset purchases. But the connection between the purchases and short-end dislocations is not straightforward. Many observers doubt that this as an issue that will substantially move the Fed’s position on tapering, and it is the prospects of sustained inflation and interest-rate hikes that are seen as the key drivers of that discussion.<blockquote>资金市场上美元的大量积累在一定程度上与美联储每月庞大的债券购买计划有关，因此也为美联储何时以及以多快的速度开始减少资产购买提供了辩论素材。但购买和短端错位之间的联系并不简单。许多观察家怀疑，这一问题是否会大幅改变美联储在缩减规模问题上的立场，而持续通胀和加息的前景被视为这一讨论的主要驱动力。</blockquote>“I don’t think tapering is going to solve this,” said Subadra Rajappa, a strategist at Societe Generale SA. “Tapering is only going to add to the confusion. If they taper asset purchases, it’s going to roil global markets.”<blockquote>“法国兴业银行（Societe Generale SA）策略师苏巴德拉-拉贾帕（Subadra Rajappa）说：”我认为缩减规模并不能解决这个问题。“缩减规模只会增加混乱。如果他们缩减资产购买规模，将会扰乱全球市场。”</blockquote>The enormous amount of fiscal stimulus being pumped into the economy is also playing a role in the glut, as is the need for the Treasury to curtail the amount of money it has on hand so it can meet a looming legal requirement on cash levels that is linked to the reinstatement of the federal debt ceiling.<blockquote>注入经济的大量财政刺激也在过剩中发挥作用，财政部需要减少手头的货币量，以便满足与恢复联邦债务上限相关的迫在眉睫的现金水平法律要求。</blockquote>Nowhere to Go<blockquote>无处可去</blockquote>This drawdown in the Treasury general account is not only boosting the amount of cash reserves in the system in search of a home, but the speed at which it’s happening also means there are fewer instruments for short-end investors to buy. That’s because one of the easiest ways to reduce the cash balance is to not issue as many Treasury bills -- the government’s shortest-term instruments -- when the old ones mature.<blockquote>财政部普通账户的这种提款不仅增加了系统中寻找归宿的现金储备，而且提款速度之快也意味着短期投资者可以购买的工具越来越少。这是因为减少现金余额最简单的方法之一就是在旧国库券到期时不要发行那么多国库券--政府的短期工具。</blockquote>Simply putting the cash to work in a bank account is also not a ready solution, with regulatory constraints spurring some banks to turn away deposits, which instead flow toward money-market funds and feed the abundance.<blockquote>简单地将现金存入银行账户也不是一个现成的解决方案，监管限制促使一些银行拒绝存款，这些存款反而流向货币市场基金并为过剩提供资金。</blockquote>Usage of the Fed’s RRP facility has now exceeded levels typically only seen at key dates in the funding calendar -- even though the current period is not typically a major crunch point. The previous record volume of $474.6 billion took place on Dec. 31, 2015, while the next biggest day was also on the final day of a year. Month-and quarter-end periods have also been known to show some signs of stress, so it’s a distinct possibility that usage will climb again on Friday, the final trading day of this month, although many observers doubt that it will stop there. Results of the next operation are set to be published around 1:15 p.m. Friday afternoon New York time.<blockquote>美联储的 RRP 工具的使用量现在已经超过了通常只有在资金日历的关键日期才会出现的水平--尽管当前时期通常不是主要的关键时刻。上一个创纪录的4746亿美元发生在2015年12月31日，而下一个最大的一天也是在一年的最后一天。众所周知，月末和季度末也会出现一些压力迹象，因此本月最后一个交易日周五使用量很有可能再次攀升，尽管许多观察家怀疑使用量是否会就此结束。下一次手术的结果将于下午1点15分左右公布。纽约时间周五下午。</blockquote>Relieving Pressure<blockquote>减压</blockquote>Indeed, some argue that the facility is doing exactly what it’s supposed to, and that is why the Fed recently increased the amount of business that each organization can do with it, as well as the accessibility of it to new counterparties.<blockquote>事实上，一些人认为该设施正在做它应该做的事情，这就是为什么美联储最近增加了每个机构可以使用该设施开展的业务量，以及新交易对手可以使用该设施。</blockquote>By providing a venue for funds, the Fed is relieving some of the downward pressure on front-end rates if everyone had to go into repo or T-bills. And that in turn enables them to keep their key benchmark, the effective fed funds rate, within its goalposts.<blockquote>通过提供资金场所，如果每个人都必须购买回购或国库券，美联储正在缓解前端利率的一些下行压力。这反过来又使他们能够将关键基准——有效联邦基金利率——保持在目标范围内。</blockquote>That rate is currently hovering around 0.06%, in the lower end of the Fed’s zero to 0.25% target range, but still acceptable to officials. A decline in other market-based front-end rates could once again bring to the fore talk of changes to so-called administered rates, the different levels that the Fed sets for excess reserve holdings and the RRP facility. But so long as the front-end remains in check, the Fed also has the option of standing pat.<blockquote>该利率目前徘徊在 0.06% 左右，处于美联储 0 至 0.25% 目标区间的下限，但官员们仍然可以接受。其他基于市场的前端利率的下降可能会再次引发关于所谓管理利率变化的讨论，即美联储为超额准备金持有和建议零售价工具设定的不同水平。但只要前端保持控制，美联储也可以选择袖手旁观。</blockquote>SocGen’s Rajappa doesn’t see a catalyst for them to shift IOER or RRP rates and said that even if the Fed did tweak them “there will still be demand for the reverse repo facility.”<blockquote>法国兴业银行（SocGen）的拉贾帕认为，他们没有改变 IOER 或 RRP 利率的催化剂，并表示即使美联储确实调整了利率，“对逆回购工具的需求仍将存在”。</blockquote>\n<div class=\"bt-text\">\n\n\n 来源：<a href=\"https://finance.yahoo.com/news/half-trillion-dollars-sitting-fed-213955871.html\">Bloomberg</a>\n为提升您的阅读体验，我们对本页面进行了排版优化\n\n\n</div>\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{},"source_url":"https://finance.yahoo.com/news/half-trillion-dollars-sitting-fed-213955871.html","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1136464317","content_text":"(Bloomberg) -- There’s so much spare cash sloshing around U.S. funding markets that investors are choosing to park almost half a trillion dollars at the central bank -- earning absolutely nothing.Usage of the Federal Reserve’s reverse repo facility -- a mechanism that’s part of the central bank’s arsenal for helping to steer short-term interest rates -- surged on Thursday to an unprecedented $485.3 billion. And with the forces driving the dollar glut still some way from abating, that figure could climb further, adding fuel to an increasingly complex debate about what the Fed should do with its various tools to keep a rein on policy.While the offering rate on the Fed reverse repo facility is 0%, there is a lack of alternative places to safely stash money for very short periods. On top of that, some of those -- like Treasury bills and market-based repurchase agreements -- have seen their rates fall at times to negative levels, meaning investors are essentially paying for the privilege of putting their money somewhere. Compared to that, 0% doesn’t seem so bad.The RRP facility, as it’s commonly called, is “the only safety valve” for the pressure that’s been building up in money markets, according to Gennadiy Goldberg, a senior rates strategist at TD Securities in New York. “It’s really just holding back the flood of cash coming.”Taper TalkThe massive buildup of dollars in the funding market is in part related to the Fed’s huge monthly bond-buying program, and is therefore providing fodder for the debate about just when and how quickly the Federal Reserve ought to begin dialing back its asset purchases. But the connection between the purchases and short-end dislocations is not straightforward. Many observers doubt that this as an issue that will substantially move the Fed’s position on tapering, and it is the prospects of sustained inflation and interest-rate hikes that are seen as the key drivers of that discussion.“I don’t think tapering is going to solve this,” said Subadra Rajappa, a strategist at Societe Generale SA. “Tapering is only going to add to the confusion. If they taper asset purchases, it’s going to roil global markets.”The enormous amount of fiscal stimulus being pumped into the economy is also playing a role in the glut, as is the need for the Treasury to curtail the amount of money it has on hand so it can meet a looming legal requirement on cash levels that is linked to the reinstatement of the federal debt ceiling.Nowhere to GoThis drawdown in the Treasury general account is not only boosting the amount of cash reserves in the system in search of a home, but the speed at which it’s happening also means there are fewer instruments for short-end investors to buy. That’s because one of the easiest ways to reduce the cash balance is to not issue as many Treasury bills -- the government’s shortest-term instruments -- when the old ones mature.Simply putting the cash to work in a bank account is also not a ready solution, with regulatory constraints spurring some banks to turn away deposits, which instead flow toward money-market funds and feed the abundance.Usage of the Fed’s RRP facility has now exceeded levels typically only seen at key dates in the funding calendar -- even though the current period is not typically a major crunch point. The previous record volume of $474.6 billion took place on Dec. 31, 2015, while the next biggest day was also on the final day of a year. Month-and quarter-end periods have also been known to show some signs of stress, so it’s a distinct possibility that usage will climb again on Friday, the final trading day of this month, although many observers doubt that it will stop there. Results of the next operation are set to be published around 1:15 p.m. Friday afternoon New York time.Relieving PressureIndeed, some argue that the facility is doing exactly what it’s supposed to, and that is why the Fed recently increased the amount of business that each organization can do with it, as well as the accessibility of it to new counterparties.By providing a venue for funds, the Fed is relieving some of the downward pressure on front-end rates if everyone had to go into repo or T-bills. And that in turn enables them to keep their key benchmark, the effective fed funds rate, within its goalposts.That rate is currently hovering around 0.06%, in the lower end of the Fed’s zero to 0.25% target range, but still acceptable to officials. A decline in other market-based front-end rates could once again bring to the fore talk of changes to so-called administered rates, the different levels that the Fed sets for excess reserve holdings and the RRP facility. But so long as the front-end remains in check, the Fed also has the option of standing pat.SocGen’s Rajappa doesn’t see a catalyst for them to shift IOER or RRP rates and said that even if the Fed did tweak them “there will still be demand for the reverse repo facility.”","news_type":1,"symbols_score_info":{}},"isVote":1,"tweetType":1,"viewCount":1118,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":[],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":false,"length":4,"xxTargetLangEnum":"ORIG"},"commentList":[],"isCommentEnd":true,"isTiger":false,"isWeiXinMini":false,"url":"/m/post/134946889"}