QRA Games Tamagotchis Play

How the QRA could be part of a Plaza Accord 2.0 Toolkit

On May 1st, the Treasury will release their latest QRA (Treasury Quarterly Refunding) where they will announce their financing needs for the quarter ahead, as well as the mix of T-bills and bonds. Recall that the Treasury has an implicit guideline to issue a mix of 80% bonds and 20% bills, but Yellen has issued as high as 58% in bills, channelling her inner Evita Peron (The more bills, the more liquidity in the system). If you want a refresher on the QRA and how Yellen games the system, you can read this Shrubstack.

On the same day, the Fed is meeting.

My conversation with

PauloMacro

triggered me to consider the upcoming QRA from a different perspective. Paulo was thinking that the QRA would impact the Dollar. Lately, I’ve been suspicious of a Plaza Accord 2.0 brewing in the background, so here I am pondering whether this is all related and Tamagotchi Yellen is about to pull a few tricks again….