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China Eases Big, Delivers Large Cut To 7-Day Reverse Repo Rate
If you were impatiently waiting on the next easing nod from the PBoC amid an incessant barrage of monetary accommodation from developed markets, you were placated on Monday.
China slashed the 7-day reverse repo rate by 20bps, a large move to be sure, in what might very well be a sign that Beijing is expecting a prolonged hit from the coronavirus containment measures adopted both domestically and, now, abroad.
China completed the first round of what's expected to be multiple waves of post-epide
Seems like odd little baby steps? The evidence shows that their SWF de-risking triggered the cascade in US equities and bonds. Are they playing the system or are they getting played?
Jeff Snider freaking out about Libor
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How huge? The TED spread, that is, the difference between 3-month LIBOR and the 3-month T-bill yield, has blown out to the highest since GFC1 surpassing even 2011. Since TED is a measure of credit risk in the interbank markets, it is telling us something important about Jay Powell as well as those falling fed funds and repo rates.