US 2yrs plunged -100bps intraday in response to Feds new tool:

BTFP
buy the fucking pivot
oops, Bank Term Funding Program

many smaller US banks has liquidity issues. Why?

money parked in long duration UST 💸 > underwater as Fed hikes 🦅 > depositors asking for money back > liquidity dries up 🩸

Tonight’s FOMC rate decision & more importantly fwd projections will be key for 2H2023 market directions.

#FOMC
#UST #IYC
#BTFP