So now the US Gov has reopened, what's next?Expect a few days for TGA spending to begin to significantly add to liquidity and should persist for several months.Obviously, QT ends in Dec and the balancesheet will crawl higher.We should see the dollar begin to weaken again.The next key step is to avoid a Year End funding squeeze. Expect several "temporary" measures to add liquidity. Term Funding and SRF operations are most likely.That will eventually morph into the desperately needed changes to the SLR to all ...

Liquidity Injection - A multi-vector liquidity injection is expected from the TGA (Treasury General Account), PBOC (People's Bank of China) balance sheet, bank reserves, and the end of QT (Quantitative Tightening) [1] Macroeconomic Outlook - Macroeconomics requires a long-term perspective and patience [1] - A liquidity flood is anticipated [1]