- The US government’s strategy to issue more UST bills to refill the TGA seems to be succeeding as it encourages MMFs to get out of RRP while keeping liquidity within the banking system.
- The outlook for the US economy may not be as bad as indicated by the record inversion in the yield curve as banks continue to distribute credit despite the tightening liquidity conditions.
- Market sentiments seem to be moving towards another 25 bps rate hike in the Jul-23 FOMC meeting given the US economy’s still-robust performance
