🚀 Will the US soon "turn on the faucet" to inject liquidity into the market?
A notable move from the U.S. Department of the Treasury: it is considering transferring part of the budget from the General Account (TGA) to the private repo market. Instead of keeping these funds at the central bank, the money would be pushed directly into the banking system, boosting liquidity for the short-term financial segment and bonds.
📌 Key figures to note:
- The current TGA balance is approximately USD 1,000 billion.
- The real yield on the 10-year Treasury note has reached 2.63% (the highest level in more than two decades).
- The yield spread between the 10-year and 2-year notes has narrowed to around 22 basis points.
💡 What does this mean?
1. Relieving pressure: Making cash flows from the TGA more flexible will ease tightening conditions, giving a boost to liquidity across the whole market.
2. The gold paradox: Usually, rising real interest rates put downward pressure on gold prices. However, holdings of gold ETFs are still increasing strongly, suggesting investor worries about the U.S. budget deficit and public debt.
3. A signal from the yield curve: The flattening yield curve is reflecting updated assessments of the economy.
👉 Hold steady—Follow the Channel https://app.binance.com/uni-qr/cpro/Square-Creator-4a0f2008149d?l=en&r=BOZMO8A1
#CryptoMarket #Trading #Crypto $TRX
A notable move from the U.S. Department of the Treasury: it is considering transferring part of the budget from the General Account (TGA) to the private repo market. Instead of keeping these funds at the central bank, the money would be pushed directly into the banking system, boosting liquidity for the short-term financial segment and bonds.
📌 Key figures to note:
- The current TGA balance is approximately USD 1,000 billion.
- The real yield on the 10-year Treasury note has reached 2.63% (the highest level in more than two decades).
- The yield spread between the 10-year and 2-year notes has narrowed to around 22 basis points.
💡 What does this mean?
1. Relieving pressure: Making cash flows from the TGA more flexible will ease tightening conditions, giving a boost to liquidity across the whole market.
2. The gold paradox: Usually, rising real interest rates put downward pressure on gold prices. However, holdings of gold ETFs are still increasing strongly, suggesting investor worries about the U.S. budget deficit and public debt.
3. A signal from the yield curve: The flattening yield curve is reflecting updated assessments of the economy.
👉 Hold steady—Follow the Channel https://app.binance.com/uni-qr/cpro/Square-Creator-4a0f2008149d?l=en&r=BOZMO8A1
#CryptoMarket #Trading #Crypto $TRX