we are so early

Some of my notes that I gathered when looking into what the QRA is and today's FOMC meeting update.

TLDR: We are so early.

aspiring web3 software engineer.

@0xpravin

Higher issuance of longer term debt increases yields, increases duration, and increases term premium

FOMC did announce a taper to QT, and are planning to cut the runoff of Treasury bonds by 35B per month and keeping MBS runoff constant.
There is a QT taper increase of $5B/month compared to last FOMC. [DOVISH*]


When directly asked whether this was a possibility, he said it was unlikely that the next move would be a hike.
The market has already priced in little to no cuts for 2024, the lack of hawkish tail risk means that risk assets should see upside from here.


As of 5/1/2024, the market doesn’t expect a possible rate cut until November 2024

QRA stands for Quarterly Refunding Announcement 
This is an announcement made every quarter regarding the Treasury’s plans for issuing new debt securities, particularly treasury bills, notes & bonds to finance the government’s operations & manage its debt obligations.
