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Overview: Wed, June 29

Daily Agenda

Time Indicator/Event Comment
07:00MBA mortgage prch. indexMild seasonal decline most likely in the latest week
08:30GDPLittle if any revision expected
09:00Powell (FOMC voter)Takes part in annual ECB policy forum
11:3017-week bill auction$30 billion offering
11:30Mester (FOMC voter)Takes part in annual ECB policy forum
13:05Bullard (FOMC voter)Delivers pre-recorded opening remarks at community development event

US Economy

Federal Reserve and the Overnight Market

Treasury Finance

This Week's MMO

  • MMO for June 27, 2022

     

    The recent softening of the SOFR fixings has prompted speculation in the market that the Fed might try to put a floor under repo rates as well unsecured interbank rates.  That seems highly unlikely.  The Fed’s target range applies to the fed funds rate rather than SOFR, and the Fed is well aware of the operational complications that could arise if it took responsibility for keeping both rates within the same target range.  Separately, we have updated our bill supply forecasts in light of the results of the June tax season.  We now think bill supplies are likely to bottom out in late July rather than early August, but we continue to think the subsequent rebound will be modest. 

MMO Analysis