Fed rate setters impact US Treasury market
Market impact increases by nearly 50% on average around Federal Open Market Committee (FOMC) decision announcements, new research from the New York Federal Reserve posits.
The research shows that the FOMC's announcements are one of the most important releases of public information to the market and have significant short-term effects on the Treasury limit order book. The analysis finds that traders are more reluctant to provide liquidity around such announcements.
The research also finds that so
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