What I’m watching… 👀

With 3-month T-bills now yielding 5.33%—which is 3 bps above the Overnight Reverse Repo (ORR) Award Rate of 5.30%—a notable drop in the ORR has occurred since Wednesday, 8/23:

$129B.

Expanding net liquidity is generally positive for risk assets.

Hopefully it’s not just a short-term fluke.