Stocks Week Ahead: Middle East Tensions, Fed Meet to Drive Market Narrative
From Investing.com: 2025-06-16 02:46:00
On Friday, markets dropped due to escalating tensions between Israel and Iran, highlighting the importance of understanding market volatility and correlations. Tax payments this week have caused a sharp decline in the Treasury General Account, injecting liquidity into the system. Excess liquidity has flowed back to the Fed through the reverse repo facility, keeping overnight funding rates low. However, as tax day approaches on June 15, liquidity is expected to tighten. Rising TGA, increased repo usage, and higher overnight funding costs may challenge trading conditions in the final weeks of June. The situation is expected to become more complex after quarter-end.
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