Nolimon1 t1_j2cgckl wrote on December 31, 2022 at 5:27 AM

Reply to comment by Ok_Paramedic5096 in 12-30-22 SPY/ ES Futures and Tesla Weekly (and yearly) Market Recap and Analysis by DaddyDersch

Technically I’m seeing Fed funds rate of 4.33 today, but close enough… Fed funds rate is a volume weighted median of all treasuries sold and reported in some specific report (not quite sure if it is indeed all sells or just a sample). So it includes longer term securities like 3 month, 6 month, 12 month that have higher yields than the one month

Ok_Paramedic5096 t1_j2ch1ui wrote on December 31, 2022 at 5:33 AM

Fed funds rate affects what the immediate rate a bank offers loans at as well a the rate they set for their over night reverse repot operations. My point still stands, why is their reverse repo market paying out at 4.25% and treasury security auctions for 1MO securities coming in at 3.875%