POPA ReconLiquidity Tightening Preparedness Signal
Liquidity Tightening Preparedness Signal SOFR - FED funds rate spread futures volumes jump noticeably recently * SOFR: Interest rate on borrowing one-day funds as collateral for U.S. bonds * FED rate : US base rate If the SOFR is higher than the U.S. benchmark interest rate, it will be difficult to raise cash in the short-term fund market, which will effectively reduce dollar liquidity Currently, the spread of the above futures is shrinking and trading volume is surging noticeably (It's still a negative number) Big hands start betting dollar liquidity will shrink.. If the above spre…
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