🏳️🌈 Patrick Krizan 🇺🇦
2.2K posts
@PatrickKrizan
Economist/Strategist - specialized in monetary policy and Capital markets. Works @Allianz. Views are my own. Retweets are not an endorsement!
XCCY basis (left) and swap spreads (30Y right) getting worse. The former suggests rising stress in the offshore dollar funding mkt; the latter suggests the same in the Treasury plumbing system. Consider them as not red alerts but yellow warning lights on the driver’s dashboard.
@ojblanchard1 @VsneTwit Please help me: if there is no risk sharing, why should interest rates be more attractive as with national borrowing?
Good Morning from Germany, which could end up as the biggest loser from the introduction of Eurobonds. Although yield spreads have narrowed significantly in recent weeks, Germany can still borrow around 0.3ppts more cheaply on 10y Bunds than on comparable European joint bonds.
Reverse repo at the FED jumped to 48bn$ on Friday, banks window dressing into quarter end in all its beauty here. Starting from Wednesday this amount will be drained all the way to zero in Q4 and we will likely see Liquidity borrowed via FED repo to start heading higher
