LynAlden on Nostr: Issuing excess tbills rather than bonds allows the Treasury to pull money out of ...

Issuing excess tbills rather than bonds allows the Treasury to pull money out of reverse repos (which is basically a void of capital outside of the financial system) and spend that money back into the financial system. If they instead issue more things, reverse repo capital can’t be used for it, so it gets sucked out of the financial system and then spent back into the system.