Every financial crisis initiates with margin calls at its core.

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The DTCC’s decision to double margin requirements for mortgage-backed securities, alongside the recent MBS VaR stress testing increase, reveals growing concerns. As the 10-year Treasury yield experienced a sharp drop over the past two weeks, accelerated by weakening manufacturing and labor market data, the financial landscape is becoming increasingly uncertain.



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Fed’s Kashkari: Inflation Battle Continues, Further Action Possible

Minneapolis Fed President Neel Kashkari asserts that the fight against inflation isn’t over, indicating readiness for further rate hikes if needed. Despite recent stable rates, Kashkari remains cautious, emphasizing the need for more economic data to determine future actions. He notes ongoing economic strength, suggesting no immediate rate cuts are on the table until inflation significantly slows.

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