/biz/ - Business & Finance

>>57662091
Ah, it's you again.
You shared some great insight yesterday.
What do you think is the reason behind the reverse repo depletion? That thing hit a nearly two year low a few days ago when it breached $500b to the downside.
The reward rate is now way higher than what the open market yield is, so what are the institutions needing the cash for?
I for one believe that the depletion is partly the cause for the full retard strength rally we've seen since the end of last October and of course also the rally in bonds, pushing the yields below the Fed funds rate.
Now I also don't believe that those investors are pushing yields down out of the goodness of their hearts. I suspect they are basically YOLO'ing on a return of QE or a massive bond buy back program so they can once again play the middle man and dump their holdings onto the Fed and/or the treasury who they believe will buy at any price.