Fed: Decoupling Dollar and Treasury Privilege
December 23, 2025
December 23, 2025
WASHINGTON, Dec. 23 (TNSRep) -- The Federal Reserve issued the following white paper (No. 2025-1427) in December 2025 by Wenxin Du, Ritt Keerati, and Jesse Schreger entitled "Decoupling Dollar and Treasury Privilege".
Here are excerpts:
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We document a strong decoupling between the convenience yield on the US Dollar and US Treasuries. We measure the convenience of the U.S. dollar using covered interest parity (CIP) deviations between risk-fre . . .
Here are excerpts:
* * *
We document a strong decoupling between the convenience yield on the US Dollar and US Treasuries. We measure the convenience of the U.S. dollar using covered interest parity (CIP) deviations between risk-fre . . .