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Phil Sloan's avatar

Excellent Analysis.

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ali hobballah's avatar

Another Superb note.. So much great insights.. Ty for Sharing. I do want to ask you about the following comment you made

" The increased supply of bills pushes up their yield, likely enough to incentivise funds to leave the $2.2tr RRP. This provides additional liquidity to asset markets"

It is my understanding that the $2.2tr in RRP already receive a rate from the Federal reserve close to the Fed fund rate. Why do you think they would be incentivised to come out of the RRP?

With gratitude

A.

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