Fed lost control of Effective Fed Funds

[Daal]

fed loses control again. 0.2% EFFR
http://www.newyorkfed.org/markets/omo/dmm/fedfundsdata.cfm

 

[nazzdack]

Quote from Daal
.........again.........

When the daily low is 0.001 and the daily high is 0.01, then it'll really get interesting!

 

[bond tr4der]

Quote from nazzdack:

When the daily low is 0.001 and the daily high is 0.01, then it'll really get interesting!

I bet we see negative borrowing rates.

 

[Daal]

the rate traded at 0.12% on friday :eek:

 

[nazzdack]

Quote from Daal:
------- 0.12% -------

1) Are you putting in sell-orders at 99.99 AND 100.00?
2) The last day of the year could be interesting in the cash market.
3) Are there option strike prices listed at 100.00 yet?

 

[Daal]

Quote from nazzdack:

1) Are you putting in sell-orders at 99.99 AND 100.00?
2) The last day of the year could be interesting in the cash market.
3) Are there option strike prices listed at 100.00 yet?

I'm going hold fed futures to expiration, I think there is a chance fed does 'unconventional' stuff(like taxing banks excess reserves) and fed funds goes negative, the market seems not aware of this