Wow! Didn't see this one coming - and on quad witching. Today's going to be a massive volume day and no more SLR relief is going to send UST yields higher. Some discussion on this here. Would expect this to follow-through and add some fire to the carry trade.

This is very significant news. Very interesting that they released this announcement before the opening bell. Banks are going to have to start unwinding treasuries in mass amounts. This is going to further disrupt the bond market.

Theres an imbalance and emptying this TGA is going to make it worse ,the problem to look for is not cash but collateral

U.S. 10-year Treasuries borrowing rate in repo market goes negative, indicating stress 5th March
"The negative cost-to-borrow came as investors were shorting the notes in a bet that U.S. Treasury yields would continue to rise, on expectations of increased issuance to finance the U.S. stimulus package and on optimism on prospects of a recovery as the country emerges from the coronavirus pandemic.
That has boosted short positions on the benchmark U.S. Treasury note which last yielded 1.578%.
The 10-year cost to borrow repo rate, which is typically positive, has been negative since Monday and hit as low as -4.25% on Thursday, analysts said. "

oh ok ,all I can say is interest yields up ,then equity down

in the FED statement
They're going to modify this again ,because there is a lot bank reserves, cash is no problem.
The problem is treasuries ,because of inflation expectation no one wants to hold at current levels.
So too short the treasuries they are being borrowed ,then the Fed is buying Treasuries out of the market with QE.
To top it off
Yellen is spending money from an account in the real economy that will not create additional Treasuries.When its banked by Joe public it will create more bank liabilities.
The money in that account is already printed into existence.

Theres a shortage for a fact already and we know this because Repo market went very negative recently.

"To ensure that the SLR—which was established in 2014 as an additional capital requirement—remains effective in an environment of higher reserves, the Board will soon be inviting public comment on several potential SLR modifications."

Good Fed, done my day in an eye bat

So while thanx for that, am I the only one to think this is completely irresponsible announcement? not the announcement itself actually, but the "surprise-ish" announcement+the moment of the announcement.
They would like to create some panic in the market they wouldn't have done otherwise.

@Vancarbon, I don't call that "cooling" it is more like throwing ice at red-hot ceramic... though I'm convinced banks & all were well aware of the stuff coming (e.g. see yesterday move already on)

anyways... early WE for me!

the liquidity problem is with the treasuries, there are a lot of shorts
showing in repo market

So sorry for those trapped, who long....

Watching eur/usd n usd/jpy. This is interesting

watching this happen on the 5 minute gave me anxiety lol

I think the USD up only due to bonds cashing out .. lets see what they do with the USD ....I expect resource counties will be bought up ...big crash on USD next week....

This should have a bullish effect on Gold, yes?