How far will Central Banks go to save the economy (or banks)? The Fed Funds target rate is back to Bernanke (BtoB?) in late 2008. And The Fed’s balance sheet keeps rising (after a momentary respite).
But it seems that all the stimulus (Federal government and Federal Reserve) is having trouble saving the market.
The S&P 500 hasn’t done so well either with today’s drop falling below the lowest P/E band.
US Treasuries rose again today and 10-year Treasury yields dropped almost 30 basis points.
And the spread between the 3 month Libor rate and the NY Fed’s Secured Overnight Finance rate is going up … and up.
Treasury Repo collateral … again?