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by cperciva 1195 days ago
The balance of reserves are held in T-Bills, which are liquid and typically can only be traded during market hours.

Ok I'll buy that if you or I wanted to sell treasury bills, but... if a company needs to liquidate $10B of treasury bills over the weekend, can't they just call up the CEO of JPMorgan and say "hey we'll give you 10 basis points over Monday's 9AM rate" and make a deal happen?
2 comments
vasco 1195 days ago
They can try, but if JPMorgan CEO is getting such a call it's going to be painful for you and you're going to be in a bad place for negotiating those 10 basis points.
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kersplody 1195 days ago
They can try, but no guarantees.
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cperciva 1195 days ago
Fair enough. Technically there's no guarantee that the treasury bill market won't lock up on Monday morning either, but I agree that's a more remote possibility.
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