NBS on Nostr: Harblinger Wouldn’t put too much weight on this. It’s weird they highlight Equity ...
Harblinger (nprofile…vxfe)
Wouldn’t put too much weight on this. It’s weird they highlight Equity vs Fed bank balances, because that’s not where the money parked in a Fed account would flow.
The Fed lowered their target overnight rate again this week, so moves in the overnight repo and said Fed accounts makes sense. Money seeks yield, which currently exists in money markets which tend to hold a bit longer duration than overnight. So I chalk this up to money just seeking yield.
Wouldn’t put too much weight on this. It’s weird they highlight Equity vs Fed bank balances, because that’s not where the money parked in a Fed account would flow.
The Fed lowered their target overnight rate again this week, so moves in the overnight repo and said Fed accounts makes sense. Money seeks yield, which currently exists in money markets which tend to hold a bit longer duration than overnight. So I chalk this up to money just seeking yield.