yield curve 2s30s is positive
The market is fully pricing in rate cuts, Jay Pow is losing the control
the money printer needs to go brrrr pic.twitter.com/YZIeKMYrnU
— 🅰🅻🅴🆂🆂🅸🅾 (@AlessioUrban) March 24, 2023
BREAKING: Moody’s credit agency says there is a risk that US banking 'turmoil' cannot be contained
— Win Smart, CFA (@WinfieldSmart) March 24, 2023
Just a few small banks. It's just an isolated banking problem. Everybody calm down. Nothing to see here, please disperse. pic.twitter.com/IAKbjAiYfi
— Sven Henrich (@NorthmanTrader) March 24, 2023
Bank of America analysts led by the Michael Hartnett say money-market funds are the new hot asset.
They point out that assets under management for money funds has now exceeded $5.1 trillion, up over $300 billion over the past four weeks. They also counted the biggest weekly flows to cash since March 2020, the biggest six-week inflow to Treasurys ever, and the largest weekly outflow from investment-grade bonds since Oct. 2022.
The last two times money-market fund assets surged — in 2008 and in 2020 — the Federal Reserve slashed interest rates. Hartnett is fond of the saying, “markets stop panicking when central banks start panicking,” and he noted a surge in emergency Fed discount window borrowing has historically occurred around a big stock-market low.