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Black Ledger

Liquidity Eases at the Margin as Credit and Concentration Firm

Lower Treasury cash lifted net liquidity, but wider high-yield spreads, higher VIX and rising concentration kept the pressure score neutral at 59.

Published
Neutral pressure gauge between fuller blue liquidity reservoirs and firmer amber credit, volatility and concentration mechanisms.
Technical illustration

Pressure stayed neutral at 59, but the components moved in different directions. Net dollar liquidity rose from $5.787 trillion to $5.800 trillion as Treasury cash fell $22.972 billion to $936.600 billion. Overnight reverse repos added only $0.093 billion, while the SOFR-IORB spread moved from -2 to 0 basis points. The high-yield spread widened 6 basis points to 308 and the ten-year real yield edged up to 2.91%.

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