Examples of using Usts in English and their translations into German
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Colloquial
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Official
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Ecclesiastic
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Medicine
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Financial
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Ecclesiastic
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Political
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Computer
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Programming
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Official/political
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Political
From a bank's perspective, USTs are not the same as cash reserves.
USTs carry much higher duration risk, which a bank can hardly ignore especially in an unwind scenario.
Exhibits 1 and 2 present a static profile for USTs and MBS while ignoring the reinvestment issue.
Unwinding the asset side of the Fed's balance sheet: As the Fed shrinks its balance sheet,it will significantly reduce its demand for USTs.
For USTs, we used disaggregated data to separate out the mid-month and end-month maturities, given the different issuance schedule at these auctions.
The Fed's disinvestment program introduces caps for maturing USTs and mortgage-backed securities(MBS) to limit the size of redemptions per month.
As the Fed reduces its demand for USTs, and as the Treasury increases supply to cover the fiscal deficit, bond prices must fall and yields rise to entice new buyers.
In order to generate runoff projections, we have to make additionalassumptions on how the Fed reinvests maturing USTs and MBS and how other components of the liabilities part of the balance sheet evolve.