🔍 Analysis: Is the US considering a new “liquidity pump” for the market?
The US Department of the Treasury is studying a plan to move a portion of money from the General Account (TGA) into private repo markets. Instead of keeping the funds idle at the central bank, this money would flow directly into the banking system, creating additional liquidity for bonds and short-term financing.
*Notable figures:*
💰 TGA scale: Approximately $1,000 billion.
📉 Yield spread between 2-year and 10-year Treasuries: Tightened to around 22 basis points.
📈 Real yield on 10-year Treasuries: Reached 2.63% (the highest level in over 20 years).
*Why it matters:*
1. *A shift in the liquidity game:* If the TGA plan succeeds, the cash flow would be more flexible, easing pressure from market tightening.
2. *Gold breaks away from the usual rule:* Even though real interest rates are rising (which often makes gold fall), holdings of gold ETF still increase—suggesting investors are concerned about risks related to US public debt and the federal budget deficit.
3. *An economic signal:* The yield curve flattening now reflects the market’s assessment.
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The US Department of the Treasury is studying a plan to move a portion of money from the General Account (TGA) into private repo markets. Instead of keeping the funds idle at the central bank, this money would flow directly into the banking system, creating additional liquidity for bonds and short-term financing.
*Notable figures:*
💰 TGA scale: Approximately $1,000 billion.
📉 Yield spread between 2-year and 10-year Treasuries: Tightened to around 22 basis points.
📈 Real yield on 10-year Treasuries: Reached 2.63% (the highest level in over 20 years).
*Why it matters:*
1. *A shift in the liquidity game:* If the TGA plan succeeds, the cash flow would be more flexible, easing pressure from market tightening.
2. *Gold breaks away from the usual rule:* Even though real interest rates are rising (which often makes gold fall), holdings of gold ETF still increase—suggesting investors are concerned about risks related to US public debt and the federal budget deficit.
3. *An economic signal:* The yield curve flattening now reflects the market’s assessment.
👉 Get hot news updates every day — Follow the Channel https://app.binance.com/uni-qr/cpro/Square-Creator-4a0f2008149d?l=en&r=BOZMO8A1
#CryptoMarket #Trading #Crypto $TRX