One Day Later: Reverse Repos Soar And The 5Y30Y Treasury Curve Drops

by confoundedinterest17

Yes, it is one day after Fed officials boosted the rate on its overnight reverse repurchase agreement facility by 5 basis points to 0.05% and decided to lift the interest paid on excess reserves by 5 basis points to 0.15%.

The result? Reverse Repos soared.

And the 5Y30Y Treasury curve declined.

Long-term inflation breakeven rates declined.

 

 

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