🌊🚨 Fed Drops $40B Treasury Bomb — Liquidity Wave Incoming!
The Federal Reserve just shocked markets, announcing monthly purchases of $40B in short-term U.S. Treasuries — a move larger than major banks expected.
Here’s what’s changing:
Barclays boosts its 2026 estimate to $525B (from $345B)
JPMorgan, TD Securities, BoA expect even bigger debt absorption
Short-term rates surged, with two-year swap spreads hitting highs since April
Funding pressure in money markets is finally cooling
💡 Why Traders Care:
More liquidity + lower borrowing costs = a friendly environment for risk assets, including crypto. Historically, Fed injections can spark strong market reactions.
Is this the start of a broader macro shift… or just temporary relief?
