0.67 yesterday, the interest on reserves were supposed to prevent that
http://www.newyorkfed.org/markets/omo/dmm/fedfundsdata.cfm
http://www.newyorkfed.org/markets/omo/dmm/fedfundsdata.cfm
Fed lost control of Effective Fed Funds
- Thread starter Daal
- Start date
1) Could "it" be that there's just too much cash pressuring the rate lower right now?
2) Traders want the "safety" of Fed Funds compared to other instruments?
3) The deferred Fed Funds futures contracts seem to be reflecting another 25 basis point easing.
4) Are you still "long" the November from ~100 ticks lower?
2) Traders want the "safety" of Fed Funds compared to other instruments?
3) The deferred Fed Funds futures contracts seem to be reflecting another 25 basis point easing.
4) Are you still "long" the November from ~100 ticks lower?
Quote from nazzdack:
1) Could "it" be that there's just too much cash pressuring the rate lower right now?
2) Traders want the "safety" of Fed Funds compared to other instruments?
3) The deferred Fed Funds futures contracts seem to be reflecting another 25 basis point easing.
4) Are you still "long" the November from ~100 ticks lower?
I agree with 1).
I switched from nov 08 to jul/oct 09 a while back, you get to buy the bubble at a discount on the deferreds
Isn't the rate paid on excess reserves now higher than the effective fed funds rate?
Hmmm...
Banks would rather lend to other banks overnight at 0.22% vs store their money at the Fed and get .65% interest
Discount window is way up at 1.25%
Am I misunderstanding something about the Fed funds? Isn't it the overnight lending rate between banks? What could possibly be their rational?
Banks would rather lend to other banks overnight at 0.22% vs store their money at the Fed and get .65% interest
Discount window is way up at 1.25%
Am I misunderstanding something about the Fed funds? Isn't it the overnight lending rate between banks? What could possibly be their rational?
fed hiked pretty hard
http://www.federalreserve.gov/newsevents/press/monetary/20081105a.htm
both required and excess reserves will earn pretty much the fed funds target rate
http://www.federalreserve.gov/newsevents/press/monetary/20081105a.htm
both required and excess reserves will earn pretty much the fed funds target rate