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Liquidity on the Edge: Debt Ceiling Drama, Repo Risk, and Market Momentum

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Liquidity remains plentiful, sustaining bullish market sentiment for now. Key risks include a breakdown in repo growth, foreign investor withdrawal, and Treasury policy for debt ceiling management. A reversal in any of these areas could signal the start of a major market correction.

The next few months will be critical in determining whether liquidity continues to sustain market momentum or if cracks start to emerge. Here are the keys to the outlook.

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Posted in 1 - Liquidity Trader- Money Trends, Fed, Central Bank and Banking Macro Liquidity