The Treasury General Account (TGA) dropped -$78 billion over the last week, the largest liquidity injection since June.
The TGA is the US government's main cash account at the Federal Reserve, and when it declines, cash flows directly into the financial system and boosts liquidity.
This marks the 4th-largest weekly drop this year.
Meanwhile, the Fed is set to buy ~$40 billion worth of Treasuries from December 12th to January 14th through its reserve management purchases.
On top of that, the central bank will use ~$14.4 billion of principal payments from its Mortgage-Backed Securities (MBS) to buy Treasury bills over the same period.
A wave of new liquidity is here
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Market liquidity is surging:
The Treasury General Account (TGA) dropped -$78 billion over the last week, the largest liquidity injection since June.
The TGA is the US government's main cash account at the Federal Reserve, and when it declines, cash flows directly into the financial system and boosts liquidity.
This marks the 4th-largest weekly drop this year.
Meanwhile, the Fed is set to buy ~$40 billion worth of Treasuries from December 12th to January 14th through its reserve management purchases.
On top of that, the central bank will use ~$14.4 billion of principal payments from its Mortgage-Backed Securities (MBS) to buy Treasury bills over the same period.
A wave of new liquidity is here