Kim Perales on Nostr: "Blow up in the basis trade & swaps: 5-alarm fire. Likely a comb of the same basis ...
"Blow up in the basis trade & swaps: 5-alarm fire.
Likely a comb of the same basis trade that blew up early in covid or swaps.
DB: As far as the mkt circuit-breakers go, if recent disruption in the US TSY mkt continues -no other option for the Fed but to step in with emergency purchases of US TSYs to stabilize: bond mkt -very similar to the Bank of England intervention following the gilt crisis of 2022. Fed's job: to aid the accelerated de-dollarization dynamic."
#USPol https://www.forexlive.com/news/the-blow-up-in-the-basis-trade-and-swaps-is-a-five-alarm-fire-20250409/
Likely a comb of the same basis trade that blew up early in covid or swaps.
DB: As far as the mkt circuit-breakers go, if recent disruption in the US TSY mkt continues -no other option for the Fed but to step in with emergency purchases of US TSYs to stabilize: bond mkt -very similar to the Bank of England intervention following the gilt crisis of 2022. Fed's job: to aid the accelerated de-dollarization dynamic."
#USPol https://www.forexlive.com/news/the-blow-up-in-the-basis-trade-and-swaps-is-a-five-alarm-fire-20250409/