Commercial Banks Taper Treasury Purchases | Joseph Wang & DC Analyst

DC Analyst joins Joseph Wang and Jack Farley for a discussion about commercial banks, treasuries, and bearishness on banks.

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DC on Twitter: @AnalystDC

Joseph Wang on Twitter: @FedGuy12

Jack Farley on Twitter: @JackFarley96

Blockworks on Twitter: @Blockworks_

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Links

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Liberty Street Economics, "The Fed’s Balance Sheet Runoff and the ON RRP Facility":

https://libertystreeteconomics.newyorkfed.org/2022/04/the-feds-balance-sheet-runoff-and-the-on-rrp-facility/

Bullard's Triple Rate Hike Comment: https://www.bloomberg.com/news/articles/2022-04-19/last-resort-fed-hike-enters-debate-as-bullard-invokes-1994-move

DC's substack: https://dcchartbook.substack.com/p/chartbook-15?s=r

Joseph Wang's writings: https://fedguy.com/draining-the-rrp/

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(00:00) Introduction To DC Analyst

(02:01) Why Are Banks Buying Fewer Treasuries?

(14:30) Implosion Of The Japanese Yen

(20:40) Who Will Buy The Treasuries?

(31:20) What If Banks Don't Lend More?

(37:30) Bearish For Banks? (No)

(42:47) Quantitative Tightening - Will The Fed Be Forced to Sell?

(46:57) Mortgage-Backed Securities

(57:40) Bullard's Comments on Triple-Hike