Fed’s Second “Not QE” T-Bill POMO Is 4.8 Oversubscribed

• Fed’s Second “Not QE” T-Bill POMO Is 4.8 Oversubscribed
  by Tyler Durden, https://www.zerohedge.com/
  Just hours after the Fed announce that it accepted $56.65BN in collateral in its latest overnight repo operation ($47.95BN in TSYs, $8.2BN in MBS), which was a modest decline from Thursday’s operation, which as we noted at the time was on the verge of being oversubscribed…
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  … the Fed announced the results of its second “NOT A QE” Treasury-Bill POMO, which showed that Dealers submitted $36BN in bids for the maximum $7.5BN in purchases.
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  As such the question we have been asking for the past month remains: why are banks still so desperate for liquidity even though the Fed has now made clear the Fed’s balance sheet will expand to accommodate all reserve needs, and why do they so stubbornly refuse to approach the interbank market for their funding needs? In short, what do they know about the banking system that we don’t?
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