Has the ted spread inverted at 1 month? That's what I"m seeing. The money market funds perhaps can't risk a liquidity event or they would be selling CP and buying bills right now.

I don't see any trade that I can do here. All dressed up and no where to go. But what I don't understand is why money center banks aren't using their excess free reserves to buy 1 month bills. There should be essentially no capital haircut unless the new Basle rules have totally mucked things up. Something isn't working. This is down 40 SPU point kind of stuff. (NOT a prediction and I'm not short SPUs).

anonymous writes: 

The Greek Theater partial government shut down has made the plunge encouragement team lazy, or else they're incompetent. I'm looking at the entirety and it feels like I'm on a submarine or other naval vessel and the klaxon horns are going off and the call is man your battle stations. Things could get wild. Grains are very nervous, especially with export worries and that is showing up in the volatility of the basis in different areas. My mentor taught me that nervous markets generally close lower and you have an edge selling into strength in nervous markets. I never even quantified this, as I accept his advice like I accept the fact that the shortest distance between two points is a straight line.


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