In July, the TIC data indicated that foreign central banks migrated in mass toward the Treasury market.
Today everyone did.
The 3 month Treasury bill now yields nothing. The Treasury though will give you your money back …
The fall in Treasury yields came even as the US government indicated that it was going to issue a lot of bills and bonds to help the Fed grow its balance sheet.
I guess this is what a close to systemic financial crisis in the US looks like.
The broker-dealers were performing many of the economic functions of banks: The expansion of their balance sheets financed a lot of credit expansion in the US over the past few years. They no longer can access the debt market. That is a problem.