Although he leaves out a couple possible wrinkles, this is a pretty straightforward/succinct analysis:
If cash stays in reverse repo, banks pay with reserves, AND the Fed is still running QT, you'd have two vacuums working in tandem to weaken systemic liquidity. Red flag for risk.
— 𝐓𝐗𝐌𝐂 (@TXMCtrades) May 29, 2023
FWIW when the Treasury refilled its coffers last May, it was the banks who paid. pic.twitter.com/BWs9m5mKpS
