Money Market Fund No Longer Accepting New Cash Amid Historic Scramble Into Treasury Bills

Money Market Fund No Longer Accepting New Cash Amid Historic Scramble Into Treasury Bills

Even before the March market meltdown, the T-Bill market was starting to exhibit symptoms of shortage which was hardly a surprise: after all, as part of its “not-QE” farce where Powell desperately tried to fool the market that he wasn’t engaging in outright QE so as not to spook investors that things are just as bad as they turned out to be (we all know how that worked out for him now that the Fed is monetizing over $100BN per day) the Federal Reserve was buying $60BN in Bills each month to bail out hedge funds somehow “fix” the repo market. It’s also why in mid-January, before anyone had heard of the Coronavirus, we said that as a result of a huge net drain in Bills  (i.e., upcoming shortage) the Fed would have no choice but to expand its QE to coupon securities in just months (which it did with a bang).