- The fact that T-bill rates have been so low to begin with, the 4-week so far down under RRP and IOER, and then going lower, the problem of tight collateral supply and redistribution has itself become the baseline case.
- What management for Target and Walmart, the two largest retailers, both admitted in their quarterly numbers and presentations was pure demand destruction. Consumers are being hard hit by prices and are now actively cutting back on (higher-margin) discretionary purchases.
- The thing about the supply shock version of “inflation” is that while prices go up in its buildup first half, the whole economy comes crashing back down during its terminal second phase.
For further details see:
T-Bills Targeted Target