Skip to content
Socio-Economics History Blog

Socio-Economics History Blog

  • About

Socio-Economics History Blog

Socio-Economics History Blog

Second Term Repo Oversubscribed As Funding Shortage Keeps Getting Worse

September 26, 2019 by mosesman

  • Second Term Repo Oversubscribed As Funding Shortage Keeps Getting Worse
    by Tyler Durden, https://www.zerohedge.com/
    Update: Step away from the panic button (at least until tomorrow).
    Moments after the Fed announced that its second, expanded $60BN term repo came in oversubscribed (see below), the results of the overnight repo were also announced, and they suggested that while the funding shortage is getting worse on a quarter-end basis (which is what the term repos are supposed to alleviate), it reported that its latest overnight repo operation (which yesterday was expanded from $75BN to $100BN), only saw interest for just over half of its total size, with $50.1BN in securities ($34.55BN in TSYs, $15.55BN in MBS) tendered.
    –
    Today’s overnight repo was a sharp drop from yesterday’s $92BN, suggesting that at least on an overnight basis, the funding shortage is getting better…..  but that’s at the expense of term funding, going into the fourth quarter.
    –
    So which funding shortage will dominate, and will the modest easing in overnight funding contract again? For the answer tune in tomorrow, when we will get the result of the final term repo, even as the overnight repos continue indefinitely into Cotber.
    –
    … moments ago the Fed announced results from the second Term Repo meant to address the quarter-end liquidity shortfall is what ICAP would have dubbed the worst case scenario: not only was it oversubscribed, but it was so by a whopping $13BN, as some $72.5BN in securities ($43BN in TSYs, $29.25BN in MBS, $0.5BN in Agencies), were submitted for today’s $60BN repo.
    …
    In other words, not only is the liquidity shortage getting worse, but the more liquidity the Fed provides via repos, the more liquidity primary dealers indicate they need.
    –
    And with it now appearing guaranteed that the full allotment of $250BN across term and overnight repo will be used up, we look to today’s overnight repo result in a few minutes, where if the term repo is any indication, the full $100BN allotment will be blown through with ease as banks confirm that their dollar shortage is far, far worse than anyone expected… and certainly is not going away after last week’s “one-time” tax payment and bill settlements.
    –
    read more.

end

Post navigation

Previous Post:

Banking Crisis ‘Getting Worse’ as FedRes Loses Control (Full Show)

Next Post:

John Rubino: Beware of the Fed Repo Man

Pages

  • About

Recent Posts

  • How the “Unvaccinated” Got It Right
  • Attacks On Iran, Syria Ignite Tensions In The Middle East
  • The Next Black Swan Will Come Out of the Derivatives Market
  • Russia, Africa, To Drop US Dollar and Euro In Trade Settlements
  • Doug Casey’s Take [ep.#234] Why Are the “Experts” Pushing Us into WW3?
  • Italy’s Internet Restored After Nationwide Outage; Reports Of Global Ransomware Attack
  • The Dollar Empire Won’t Go Quietly.
  • The Medical System is a Complete SCAM: Please Stay Away
  • Why They Lied: Del Bigtree on Pharma, mRNA EUA & The COVID Catastrophe Cover-Up – Ask Dr. Drew
  • Gravitas LIVE: Three Strong Earthquakes Jolt Turkiye & Syria Leaving Over 2000 Dead
  • Three Point Plan to Avoid Conflict With China
  • Starvation Is A Credible Risk; The Wealthy Know It | Joel Salatin
  • BOMBSHELL: Government Is Tracking You Through Vaccines!
  • NATO Boots on the Ground in Ukraine?
  • WARNING: Bank Runs Are Coming & World War 3 w/ Gerald Celente
  • John Coleman || CIA Agent’s 1992 Confession Unearthed: ‘WEF Will Kill 4 Billion by 2030’
  • Escobar: Ukraine War Is Desperate Move By US To Preserve Hegemony, & Prevent Multipolar World
  • Physical Silver & Gold Market Is Taking Control | Peter Grandich
  • At Least 1 Billion Dead or Disabled from CV19 Bioweapon – Dr. Betsy Eads
  • Escalation to World War III And The British Establishment

Archives

  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011

Categories

  • Disaster
  • Economics
  • Endtimes
  • Geo-Politics
  • History
  • Medicine & Health
  • Satire
  • Science & Technology
  • Social Trends
  • Uncategorized

Meta

  • Log in
  • Entries RSS
  • Comments RSS
  • WordPress.org
September 2019
M T W T F S S
« Aug   Oct »
 1
2345678
9101112131415
16171819202122
23242526272829
30  
© 2023 Socio-Economics History Blog | WordPress Theme by Superbthemes