The Traderszone Network

Published in TZ Latest News 26 March, 2015 by The TZ Newswire Staff

Treasury Collateral Shortage Crosses The Atlantic, Makes European Landfall

In “How The ECB Is Distorting Euro Money Markets” we summarized Barclays take on the effects of ECB QE as follows: “short-end core paper will trade below -0.20%, extreme supply/demand imbalances will cause general collateral rates to trade through the depo rate, money market fund yields will turn decisively negative testing investor patience, and central banks had better make good on promises to make some of their inventory available for lending or risk impairing the functioning of the repo market (

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