Interestingly, Treasury Direct was down yesterday. The website allows investors to quickly move large sums from banks into US Treasury holdings. I doubt this story ends with SVB, as the current inverted yield curve is a total disaster for banks. Large accounts will not keep their money in a bank yielding 2% if they can get over 4% from the Treasury.
Silicon Valley Bank, Dead of Maturity Mismatch
Interestingly, Treasury Direct was down yesterday. The website allows investors to quickly move large sums from banks into US Treasury holdings. I doubt this story ends with SVB, as the current inverted yield curve is a total disaster for banks. Large accounts will not keep their money in a bank yielding 2% if they can get over 4% from the Treasury.