Tightening liquidity has resumed. This is a pressure on all assets. The question remains how these pressures will be distributed between assets – which will depend on how these tightening pressures impact the growth cycle. The Treasury has now extended the duration of its issuance while the Fed continues to keep interest rates elevated and roll off its balance. The combination of these pressures is a tightening of liquidity conditions. The mechanics of how these factors come together to paint the liquidity picture is beyond the scope of this note, but we have written on this subject extensively in others. Today, we ... (full story)