Nowadays, 8% of shorts in bonds market fail settlement.
Shoring T-bills and bonds is a monetary policy tool used by governments and central banks to raise capital and manage their debts. It involves the sale of government securities, such as T-bills (short-term debt obligations) and bonds (long-term debt obligations), to investors in exchange for cash. The cash raised through the sale of these securities is then used to finance government operations and pay off outstanding debts.
One of the main consequences of shoring T-bills and bonds is the increase in the money supply. When the government sells these securities, it is essentially creating new money to pay for them. This increase in the money supply can lead to inflation, which is the general rise in the price of goods and services over time.
Inflation is generally measured by the consumer price index (CPI), which tracks the average price of a basket of goods and services consumed by households. When the CPI rises, it means that the purchasing power of money is decreasing, as people need more of it to buy the same goods and services.
Shoring T-bills and bonds can be a useful tool for governments and central banks to manage their debts and fund their operations. However, it can also have negative consequences, such as increasing inflation and reducing the purchasing power of money. As such, it is important for governments and central banks to carefully consider the potential impacts of shoring T-bills and bonds on the economy before implementing this policy.