There’s not much to say about RWUSD’s price. It’s still hovering around 0.9996 against U, just like this morning. What really matters is the interest, and that’s actually been a tailwind over the past few days.
Its yield is mainly benchmarked against short-term U.S. Treasury bills: the higher Treasury yields are, the more it pays. Last week, the Fed held steady, with rates still at 3.75% to 4%. Two voting members called for a rate hike outright, and the market is pricing in odds of over 80% for a hike in December.
That means short-term Treasury yields aren’t likely to fall anytime soon, so RWUSD’s yield won’t shrink. If rates do go up, the yield could rise as well.
Bitcoin is down more than 2% today, and SOL is down more than 3%, while people holding RWUSD are still collecting interest by the day. When the market’s rough, it’s a place to park your money.
Senior Brother’s view is that there’s no real opportunity to bet on price moves, but at this stage, putting idle cash here is a better deal than leaving it in U. If Friday’s nonfarm payrolls report is still strong, the interest-rate outlook will only become more stable. #RWUSD $RWUSD
Its yield is mainly benchmarked against short-term U.S. Treasury bills: the higher Treasury yields are, the more it pays. Last week, the Fed held steady, with rates still at 3.75% to 4%. Two voting members called for a rate hike outright, and the market is pricing in odds of over 80% for a hike in December.
That means short-term Treasury yields aren’t likely to fall anytime soon, so RWUSD’s yield won’t shrink. If rates do go up, the yield could rise as well.
Bitcoin is down more than 2% today, and SOL is down more than 3%, while people holding RWUSD are still collecting interest by the day. When the market’s rough, it’s a place to park your money.
Senior Brother’s view is that there’s no real opportunity to bet on price moves, but at this stage, putting idle cash here is a better deal than leaving it in U. If Friday’s nonfarm payrolls report is still strong, the interest-rate outlook will only become more stable. #RWUSD $RWUSD
