stablecoin inflows lower 3M Treasury bill yields, while outflows raise yields by a larger amount

stablecoin inflows lower 3M Treasury bill yields, while outflows raise yields by a larger amount

LP-IV estimates:
⏩ $3.5B inflows lower yields by ≈3 bp
⏪ $3.5B outflows raise the yields by ≈8 bp

inflow = mint
outflow = redemption/burn