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0 pointsdragontamer3y ago0 comments

No.

My money market fund (VMFXX) is composed of Fed Repo notes with 13 _DAYS_ of maturity average (https://investor.vanguard.com/investment-products/mutual-fun...)

A bank holding customer deposits in lol 30 _Year_ or 10 _YEAR_ treasuries is anything but safe. That's called duration risk, and congrats, they just got burned by duration risk.

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rr8083y ago

Sure, what I meant was Basel rules mark treasuries as level 1 capital. So Basel doesn't have much to do with it, as the OP suggested.

wpietri3y ago

Are you sure? The article says, "short-term Treasury bills get 100-per-cent weightings", implying that longer term ones would get something else.

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