Low bids on the 4 and 8 week bills were 0.00%. That means firms are willing to get the same amount of money back in that time period with no return at all in exchange for these bills. Why would they do that if they can get 4+% in RRP? Because banks are scared. Good collateral is in short supply and no one wants to be SVB 2.0. The banks that haven’t been bailed out or bought out by the big boys are scrambling.
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