Quiet SOFR-Fed Funds basis? Far from it.
Trading in SOFR vs. Fed Funds futures (SERFF) spreads hit an all-time high yesterday, as the Fed cut its policy rate by 25 bps and announced the end of QT (maturing MBS to be reinvested in Bills).
So let me get this straight, if inflation is 0.2% mom everything is good... but if its 0.3% mom the the Fed should definitely hike. Doesn't that strike anyone as a bit dumb?
An older guy once told me “you’ll reach a point in life when you accept that you’ll never achieve your dreams”
I check in with myself from time to time to make sure I never start believing that loser bs
In case something does happen to me there’s only one thing the world needs to know
There’s $7 trillion plus cash on the sidelines
It seems impossible but its true
In case something does happen to me, there’s only one thing the world needs to know.
The United States has teleportation technology.
It seems impossible but it’s true.
SR3Z6 is now the largest contract by OI in SOFR history. Amid ongoing uncertainty surrounding the Fed's path for rates, Dec26 #SOFR futures have amassed the largest position of any contract in SOFR history, with OI +28% in just over two months.