WS #16053
Treasury-bill yields have risen sharply due to a wave of new issuance, testing investor demand and posing a threat to overnight funding markets. This liquidity tightening is compounding the bearish sentiment in equity markets, as evidenced by significant put buying in SPY. Financials like US Bancorp are seeing target cuts, reflecting concerns over net interest margins in a higher-for-longer rate environment.
Macro Liquidity & Rates
Treasury-bill yields have risen sharply due to a wave of new issuance, testing investor demand and posing a threat to overnight funding markets. This liquidity tightening is compounding the bearish sentiment in equity markets, as evidenced by significant put buying in SPY. Financials like US Bancorp are seeing target cuts, reflecting concerns over net interest margins in a higher-for-longer rate environment.