Market Liquidity Warning Signs Are Getting Louder

With SOFR climbing, spreads widening, and credit stress showing up, the market may soon face renewed pressure on risk assets.

The New York Stock Exchange building.

Image Source: Unsplash


Liquidity is tightening as the Treasury General Account rises and the reverse repo facility drains, pushing reserve balances lower. With SOFR climbing, spreads widening, and credit stress showing up, the market may soon face renewed pressure on risk assets.
 

00:13:15


More By This Author:

Stocks Are Ignoring The Warning Signs From Credit And Liquidity
The VIX And Implied Volatility Signals Diverge Before NFP Release
Bond Yields Drop After JOLTS Miss While Equities Lift Into Close

Comments