essentially many T-bill sales flood the market at once, so their price falls, thus causing a yield increase

essentially many T-bill sales flood the market at once, so their price falls, thus causing a yield increase

selling T-bills is more urgent than buying - the stablecoin issuer cannot split it across auctions & dealers as easily, so the market yield change is larger on outflows

Illya Gerasymchuk 2025-08-17 16:05

stablecoin outflows proxy T-bill sales or reduced rolling

redemption/burn requires the stablecoin issuer to sell NOW, so large volumes means dealers/market makers will require a yield concession to warehouse those T-bills, as they are subject to balance sheet constraints