It’s all about the Money Market Mutual funds
They are the Bank.
Consider the enormous multi-trillion $ pressure as money market mutual funds start clamoring, elbowing, and eye-gouging their way up the Treasury market yield curve to avoid negative nominal rates on 1-month, 3-month, and 6-month paper.
They’ll do so in a death struggle to avoid negative nominal rates. Negative nominal rates will mean they need to break the $Buck and that will trigger the recently SEC-instituted systemic withdrawal restrictions as institutions try to move their “safe” money to higher ground.
Folks holding 1-year, 2-year, 5-year Bills/Notes could make out quite well under these conditions.
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