The Status Of The ‘Liquidity Drain’ Bear Case

What happened to the "liquidity drain" bear case? Asked the curious market participants. I've fielded any number of questions this month about the widely-circulated thesis that said a combination of factors including, but not limited to, a deluge of T-bill issuance post-debt ceiling deal, would likely sap liquidity and with it, risk assets' joie de vivre. The overarching narrative remains valid. The ECB, for example, confirmed last week they'll cease APP reinvestments in July (i.e., accelerate