Why the Fed Can’t Hike T-bill Rates and What That Really Means

Why the Fed Can’t Hike T-bill Rates and What That Really Means
The Federal Reserve Building on Constitution Avenue in Washington on March 27, 2009. J. Scott Applewhite/AP
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Commentary 

It was very early in the morning, U.S. time, and the 4-week U.S. Treasury bill then being traded all over Asia suddenly captured a huge bid. At around 3:30 am EDT, May 11, the equivalent yield on this particular short-term instrument ticked lower and lower. Two hours later, around 5:30 am, the rate had fallen below 0.50 percent (50 basis points) from around 0.52 percent where it had been trading since the afternoon before.

Jeffrey Snider
Jeffrey Snider
Author
Jeff Snider is Chief Strategist for Atlas Financial and co-host of the popular Eurodollar University podcast. Jeff is one of the foremost experts on the global monetary system, specifically the Eurodollar reserve currency system and its grossly misunderstood intricacies and inner workings, in particular repo/securities lending markets.
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