Global Liquidity Watch: Weekly Update
Trapped by Trade: Central Banks and the Impossible Trinity - kaustubhs@groww.in - Groww Mail
Capital Flowsmail.google.comWith growing demands coming from pending debt roll-overs as the ‘maturity wall’ of debt termed out during the COVID emergency comes nearer, to say nothing of the 30% of US Treasury debt that Treasury Secretary Scott Bessent must refinance, the Fed will be forced to raise US liquidity levels.
US Fed QE Needs to Restart Fast
A typical liquidity cycle lasts 5-6 years from trough-to-trough and, based on the October-2022 low point, we expect the current cycle to peak around Q4 this year.
Global Liquidity Watch: Weekly Update
World Economic Outlook, April 2024: Steady but Slow: Resilience amid Divergence
imf.org
Global liquidity levels have stabilized following the Q4 dip. Four factors are underpinning them: (1) Improving Central Bank liquidity, due to the PBoC and ECB. Fed liquidity remains a cause for concern. (2) Collateral values (bonds) which are picking up, in part helped by (3) the loss of momentum in the US dollar. And finally (4), bond market vola... See more