Graybeard
Full time employment: Posting here.
- Joined
- Aug 7, 2018
- Messages
- 597
So QT doubles to $95B on September 1. This will reduce the money supply but how will it affect the yields on T bills?
Selling bills, notes or bonds would they be for sale on the secondary market and if that is true then would that drive the price down due to an increase in the supply? Or does it work the other way to lessen the amount of T bills the treasury will sell in September and that should increase the price due to less supply?
With the FOMC meeting on September 21, we should expect a 50 bp or 75 bp increase to the overnight rate. I would think that increase will cause T bills to yield a bit more. So will T bills have an extra yield boost from the increase in QT or maybe it'll mitigate any increase in the T bill rates?
Selling bills, notes or bonds would they be for sale on the secondary market and if that is true then would that drive the price down due to an increase in the supply? Or does it work the other way to lessen the amount of T bills the treasury will sell in September and that should increase the price due to less supply?
With the FOMC meeting on September 21, we should expect a 50 bp or 75 bp increase to the overnight rate. I would think that increase will cause T bills to yield a bit more. So will T bills have an extra yield boost from the increase in QT or maybe it'll mitigate any increase in the T bill rates?