FedRes Set Record US$584B Reverse Repo on Monday!!! June 15, 2021 by mosesman The Fed’s reverse repo facility, which offers approved money managers the option to lend money to the Fed overnight in return for Treasury collateral, set a record $584 billion on Monday. Demand is expected to continue to grow as the Treasury continues to pare issuance of Treasury bills. Source: https://www.reuters.com/ It is worth noting that demand for the Fed’s reverse repo facility surged to a record of $584 billion on Monday, reflecting swelling liquidity conditions at financial institutions. A reverse repo happens when a central bank sells securities and raises cash from the markets in order to provide stability in lending flows. It usually happens when there is too much liquidity (cash) and demand for interest-bearing securities rises. Source: Source: Bloomberg, DailyFX WooHoo!! US$1 Trillion Reverse Repo Will Be Here Soon!!!