“We all want an economy where everyone has the opportunity to contribute to and benefit from prosperity,” - Jay Powell during an appearance at the Economic Club of Washington, D.C. The market is flooded with USD reserves relative to collateral, why the O/N RRP activity continues to surge. It seems as if every new added USD ends up at the O/N RRP facility currently, which effectively sterilizes the liquidity addition. We hence pondered over the course of the week whether we are close to reaching a peak in the USD liquidity abundance (Global: Close to peak USD liquidity abundance! Receive 5yr EURUSD xCcy basis) and ... (full story)