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>美联储坐拥5万亿美元却一无所获</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":[],"fanSize":2,"starInvestorFlag":false},"themes":[],"images":[],"coverImages":[],"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>美联储坐拥5万亿美元却一无所获</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）——美国金融市场上有如此多的闲钱，以至于投资者选择将近5000亿美元存入央行——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>美联储逆回购工具（该机制是美联储帮助引导短期利率的武器库的一部分）的使用量周四飙升至前所未有的4,853亿美元。由于推动美元过剩的力量仍有一段距离减弱，这一数字可能会进一步攀升，为关于美联储应该如何利用其各种工具来控制政策的日益复杂的辩论火上浇油。</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%，但缺乏其他地方可以在很短的时间内安全地存放资金。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水平，这意味着投资者本质上是在为将资金投入到某个地方的特权付费。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迪·戈德堡(Gennadiy Goldberg)表示，通常所说的RRP工具是应对货币市场压力的“唯一安全阀”。“这实际上只是阻止了大量现金的到来。”</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>融资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，因此为关于美联储应该何时以及以多快的速度开始缩减资产购买的辩论提供了素材。但购买和短端错位之间的联系并不简单。许多观察人士怀疑这一问题是否会大幅改变美联储缩减购债规模的立场，而持续通胀和加息的前景被视为这一讨论的关键驱动力。</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Subadra Rajappa表示：“我认为缩减规模不会解决这个问题。缩减规模只会加剧混乱。如果他们缩减资产购买规模，将会搅乱全球市场。”</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>注入经济的巨额财政刺激也在供应过剩中发挥了作用，财政部需要削减手头的资金，以便满足迫在眉睫的现金水平法律要求。与恢复联邦债务上限有关。</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>财政部普通账户的减少不仅增加了系统中寻找住房的现金储备数量，而且这种情况发生的速度也意味着可供短期投资者购买的工具减少。这是因为减少现金余额的最简单方法之一是在旧国库券到期时不要发行太多国库券（政府最短期的工具）。</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，转而流向货币市场基金并养活富足的人。</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>美联储建议零售价工具的使用量现在已经超过了通常只有在融资日历中关键日期才能看到的水平——尽管当前时期通常不是主要的关键时刻。上一个4746亿美元的创纪录交易量发生在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，月末和季度末也显示出一些压力迹象，因此使用量很可能会在本月最后一个交易日周五再次攀升，尽管许多观察家怀疑这种情况是否会就此停止。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>释放压力</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组织可以利用它做的业务量，以及新交易对手对它的访问。</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>通过为资金提供场所，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，处于美联储零至0.25%目标区间的下限，但仍为官员所接受。其他基于市场的前端利率的下降可能会再次引发人们对所谓管理利率变化的讨论，即美联储为超额准备金持有和RRP工具设定的不同水平。但只要前端仍然受到控制，美联储也可以选择按兵不动。</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这些利率，“仍然会有对逆回购工具的需求”。</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>美联储坐拥5万亿美元却一无所获</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>美联储坐拥5万亿美元却一无所获</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）——美国金融市场上有如此多的闲钱，以至于投资者选择将近5000亿美元存入央行——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>美联储逆回购工具（该机制是美联储帮助引导短期利率的武器库的一部分）的使用量周四飙升至前所未有的4,853亿美元。由于推动美元过剩的力量仍有一段距离减弱，这一数字可能会进一步攀升，为关于美联储应该如何利用其各种工具来控制政策的日益复杂的辩论火上浇油。</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%，但缺乏其他地方可以在很短的时间内安全地存放资金。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水平，这意味着投资者本质上是在为将资金投入到某个地方的特权付费。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迪·戈德堡(Gennadiy Goldberg)表示，通常所说的RRP工具是应对货币市场压力的“唯一安全阀”。“这实际上只是阻止了大量现金的到来。”</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>融资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，因此为关于美联储应该何时以及以多快的速度开始缩减资产购买的辩论提供了素材。但购买和短端错位之间的联系并不简单。许多观察人士怀疑这一问题是否会大幅改变美联储缩减购债规模的立场，而持续通胀和加息的前景被视为这一讨论的关键驱动力。</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Subadra Rajappa表示：“我认为缩减规模不会解决这个问题。缩减规模只会加剧混乱。如果他们缩减资产购买规模，将会搅乱全球市场。”</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>注入经济的巨额财政刺激也在供应过剩中发挥了作用，财政部需要削减手头的资金，以便满足迫在眉睫的现金水平法律要求。与恢复联邦债务上限有关。</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>财政部普通账户的减少不仅增加了系统中寻找住房的现金储备数量，而且这种情况发生的速度也意味着可供短期投资者购买的工具减少。这是因为减少现金余额的最简单方法之一是在旧国库券到期时不要发行太多国库券（政府最短期的工具）。</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，转而流向货币市场基金并养活富足的人。</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>美联储建议零售价工具的使用量现在已经超过了通常只有在融资日历中关键日期才能看到的水平——尽管当前时期通常不是主要的关键时刻。上一个4746亿美元的创纪录交易量发生在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，月末和季度末也显示出一些压力迹象，因此使用量很可能会在本月最后一个交易日周五再次攀升，尽管许多观察家怀疑这种情况是否会就此停止。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>释放压力</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组织可以利用它做的业务量，以及新交易对手对它的访问。</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>通过为资金提供场所，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，处于美联储零至0.25%目标区间的下限，但仍为官员所接受。其他基于市场的前端利率的下降可能会再次引发人们对所谓管理利率变化的讨论，即美联储为超额准备金持有和RRP工具设定的不同水平。但只要前端仍然受到控制，美联储也可以选择按兵不动。</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这些利率，“仍然会有对逆回购工具的需求”。</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":710,"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"}