Repo Crisis Looms: Fed’s Reverse Repo Usage Soars To $351BN, Fifth Highest Ever

• Repo Crisis Looms: Fed’s Reverse Repo Usage Soars To $351BN, Fifth Highest Ever
  by Tyler Durden, https://www.zerohedge.com/
  As expected, today’s overnight reverse repo facility usage soared above $300 billion, surging $57BN from $293BN on Wednesday to a whopping $351BN as 48 counterparties parked their reserves with the Fed in exchange for a 0.000% rate.
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  The surge in usage pushed the total to not only well above the Covid crisis high of $285BN, but was the fifth highest on record! This is a topic we have been closely following in the past few days…
  • Zoltan On The Coming QE Endgame: “Banks Have No More Space For Reserves”
  • Fed Alert: Overnight Reverse Repo Usage Soars Above Covid Crisis Highs

  … for one reason: the repo market is on the verge of another crisis, with banks sending the Fed a clear SOS signal – they can’t take up any more Fed reserves (and there is still about $1 trillion on deck even assuming an accelerated taper).
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  read more.

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