MACRO LIQUIDITY IS TIGHTENING AND VOLATILITY IS COMING FOR THE MARKETS 📉
The latest data shows the reserve management plan has dropped 75% from its peak, signaling that liquidity, not just rate hikes, is the real headwind for risk assets. With Treasury repo sizes cut in half, the market is struggling to absorb the current capital environment.
Expect some choppiness in July as these liquidity constraints work their way through the system. I am keeping a close eye on how the broader market reacts to incoming data rather than guessing at policy shifts. What is your plan for the next few weeks?
Not financial advice. Always manage your risk.
#Macro #Trading #Liquidity #MarketUpdate #Investing
🎯
The latest data shows the reserve management plan has dropped 75% from its peak, signaling that liquidity, not just rate hikes, is the real headwind for risk assets. With Treasury repo sizes cut in half, the market is struggling to absorb the current capital environment.
Expect some choppiness in July as these liquidity constraints work their way through the system. I am keeping a close eye on how the broader market reacts to incoming data rather than guessing at policy shifts. What is your plan for the next few weeks?
Not financial advice. Always manage your risk.
#Macro #Trading #Liquidity #MarketUpdate #Investing
🎯