repo volumes soar to new highs, while RRP drain is likely to come from MMFs funding leveraged investors (if SOFR > ON/RRP) and buying "TGA refill" bills (if 1-month yield > SOFR). TGA piece out soon.
You said: "Repo volumes soar to new highs, while RRP drain is likely to come from MMFs funding leveraged investors (if SOFR > ON/RRP) and buying "TGA refill" bills (if 1-month yields > SOFR). TGA piece out soon."
If 1 month yield > SOFR yield, doesn't mean that there's more demand for 1 month yield than SOFR?
hey Conks may I ask a question?
You said: "Repo volumes soar to new highs, while RRP drain is likely to come from MMFs funding leveraged investors (if SOFR > ON/RRP) and buying "TGA refill" bills (if 1-month yields > SOFR). TGA piece out soon."
If 1 month yield > SOFR yield, doesn't mean that there's more demand for 1 month yield than SOFR?
What am I missing?
THanks