Intra-Week Liquidity Update

Coming through with a quick intra-week Liquidity update.

Since we first shared it, the RoC has continued to decline, with Bitcoin following it.

However, we’re now seeing early signs of improvement in the RoC of the GLI on lower timeframes.

Bank reserve balances remain extremely low, but if the RRP drain persists, a new tool from the Fed-essentially QE-could already be in play.

Scott Bessent's first QRA suggests he's following Janet Yellen's approach by issuing short-term bills.

The estimated TGA balance by the end of March is projected at $850B, but with the debt ceiling already reached, the Treasury will likely need to start draining the TGA sooner rather than later to fund government operations-at least until a new debt limit is set.

For now, extraordinary measures remain in play.

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