Dollar funding stress keeps rising as the US Treasury additionally demands dollars and floods the market w/bills. Libor OIS risk spread jumps to 137bps, the highest level since GFC.

Dollar funding stress keeps rising as the US Treasury additionally demands dollars and floods the market w/bills. Libor OIS risk spread jumps to 137bps, the highest level since GFC. pic.twitter.com/qYXyWyxxv4

— Holger Zschaepitz (@Schuldensuehner) April 2, 2020

Round of applause for the Federal Reserve 👏
The $USD is officially a funding currency… $EUR $JPY $CHF all have a 3-month positive implied yield. It only took 150bps of rate cuts, unlimited QE, CB swap lines and 7 lending facilities pic.twitter.com/Ls9UdyfNcR

— Viraj Patel (@VPatelFX) April 2, 2020

https://twitter.com/NorthmanTrader/status/1243258907486818304

In the latest week the Fed's balance sheet exploded by $586.1 billion. That is over 7 months of QE3 in one week! The Fed's balance sheet is now $5.24 trillion, almost 20% larger than it was before the Fed's QT started. At this rate the balance sheet will hit $10 trillion by June!

— Peter Schiff (@PeterSchiff) March 26, 2020