$53.2 Billion In QE Lite: Fed Concludes First Repo In A Decade Amid Liquidity Panic

• $53.2 Billion In QE Lite: Fed Concludes First Repo In A Decade Amid Liquidity Panic
  by Tyler Durden, https://www.zerohedge.com/
  Update 4: It’s over: after a torrid 30 minutes in which the NY Fed first announced a repo operation, then announced the repo was canceled due to technical difficulties, then mysterious the difficulties went away just minutes later, at precisely 10:10am, the Fed concluded its first repo operation in a decade, which while not topping out at the $75 billion max, was nonetheless a significant $53.15 billion, split as follows:
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  * $40.85BN with TSYs as collateral at a 2.1% stop out rate
  * $0.6BN with Agencies as collateral at a 3.0% stop out rate
  * $11.7BN with Mortgage-backed securities as collateral at a 2.1% stop out rate.
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  read more.
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• “Nobody Knows What’s Going On”: Repo Market Freezes As Overnight Rate Hits All Time High Of 10%
  by Tyler Durden, https://www.zerohedge.com/
  Back in the summer of 2013, China’s banking system was on the verge of collapse when its overnight repo rates briefly soared to the mid-20% range, prompting the central bank to take emergency intervention to avoid a funding freeze.
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  As of this morning, the US is halfway there. After we reported yesterday that “something snapped” as chaos hit the report market, and the overnight repo rate exploded as high as 7% for a variety of reasons including:
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  * elevated UST supply,
  * bloated dealer balance sheets and year-end regulatory constraints
  * a banking system near reserve scarcity,
  * investors selling bonds back to dealers, and
  * banks and money-market funds to make their quarterly tax payment.
  …
  … on Tuesday this paniced funding shortage has intensified to never before seen levels, as overnight repo has now hit 10% and shows no signs of slowing.
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  read more.

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