Federal Reserve Governor Lael Brainard crossed the wires in the last minutes saying that the recent trouble in the repo market was due to a confluence of factors and technical issues. “Covenants on leveraged loans have weakened quite notably,” Brainard further noted.
Brainard refrained from delivering any comments on the policy outlook. As of writing, the US Dollar Index was up 0.6% on a daily basis at 98.90 and the 10-year US Treasury bond yield was up more than 2% at 1.687%.
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