Rate Hike? What Rate Hike?

If the bill rate, then, strays too far it should be brought back in short order because the RRP rate is fixed by monetary policy. You might be forgiven, then, for thinking that last week's bill trading wasn't really noteworthy, declining only close to the 75 bps floor. The problem for the Fed, as well as all the rest of us (indirectly), is that they changed the RRP “floor” almost two weeks ago to 100 bps.