🚀 Market Pressures Persist as SOFR Futures Trading Increases
#SOFR #futures #federalfundsrate #repo #financingpressures #WallStreet #Treasurybills #BankofAmerica #FederalReserve #quantitativetightening #liquidity
According to Odaily, the lack of direct response to recent market pressures has led to increased trading in SOFR futures against the federal funds rate, while other rates in the repo market remain elevated. Wall Street strategists warn that financing pressures will continue until November as reserves decline and more Treasury bills are issued, injecting collateral into the market.
Mark Cabana, head of U.S. rate strategy at Bank of America, stated that ongoing pressure will eventually force the Federal Reserve to inject additional liquidity before its December meeting.
"The Federal Reserve's decision to hold off on liquidity operations may be due to its belief that current financing pressures are temporary," Cabana wrote in a report to clients. "However, we consider this unlikely. As quantitative tightening continues, financing pressures are likely to persist and intensify."#SOFR #futures #federalfundsrate #repo #financingpressures #WallStreet #Treasurybills #BankofAmerica #FederalReserve #quantitativetightening #liquidity
🚀 Ripple Prime Receives Investment Grade Rating from Kroll
#Ripple #RipplePrime #Kroll #CreditRating #InvestmentGrade #Brokerage #Derivatives #ETD #Repo #USTreasuries #Finance #FixedIncome #Fintech #XRP
Global credit rating agency Kroll has awarded Ripple's brokerage platform, Ripple Prime, an investment-grade issuer rating of BBB. According to Foresight News, Kroll stated that the issuer rating for Ripple Prime US indicates that its business model is in the scaling phase. The focus is primarily on clearing and intermediary services within its exchange-traded derivatives (ETD) platform, set to launch in 2024, as well as similar activities in the fixed income repo sector. These activities are expected to reach significant scale by 2025, concentrating mainly on short-term U.S. Treasury and agency securities.#Ripple #RipplePrime #Kroll #CreditRating #InvestmentGrade #Brokerage #Derivatives #ETD #Repo #USTreasuries #Finance #FixedIncome #Fintech #XRP
🚀 India's Central Bank Likely to Maintain Rates Amid Middle East Crisis
#India #centralbank #interestrates #RBI #MiddleEastCrisis #IranConflict #rupeedepreciation #economicgrowth #MonetaryPolicy #repo_rate #economists #currencypressure #speculativebets
India's central bank is expected to keep its interest rates unchanged on Wednesday, marking its first policy decision since the onset of the Iran conflict. According to Jin10, the bank is striving to balance economic growth support with addressing the significant depreciation of the rupee. All 30 economists surveyed by Bloomberg anticipate that the Reserve Bank of India (RBI) will maintain the benchmark repo rate at 5.25%. Despite a dimming economic outlook since the last meeting, the RBI had previously indicated a prolonged pause in rate changes. The Middle East crisis has placed the Monetary Policy Committee in a challenging position. The rupee's decline since the conflict began has become a major pressure point, prompting the RBI to take its most aggressive measures in over a decade to curb speculative bets against the currency. The central bank now faces a dilemma: whether to raise rates to support the rupee or keep borrowing costs low to cushion economic growth.#India #centralbank #interestrates #RBI #MiddleEastCrisis #IranConflict #rupeedepreciation #economicgrowth #MonetaryPolicy #repo_rate #economists #currencypressure #speculativebets