What Drove The Markets, Per Kyle Bass
QE Infinity @StealthQE4
This is excellent. Kyle Bass breaks everything down in 5 minutes.
He thinks switching the Treasury auctions from long duration bonds to t-bills enabled the Treasury to throw another $2 trillion of liquidity into the market.
He then gets into the Yen/carry trade. 👇👇
What’s interesting with Yen/carry is it wasn’t just the hedge fund using the trade
The Japanese people were too. They were buying things in dollar assets because they were scared of their depreciating currency
So when the Yen strengthened they helped unwind the carry trade too
How big is this Yen/carry unwind? I don’t think anyone really knows
https://twitter.com/StealthQE4/status/1820604521850048679
https://twitter.com/StealthQE4/status/1820603963143557447