IPFS News Link • Economy - Economics USA
Second Term Repo Oversubscribed As Funding Shortage Keeps Getting Worse
• https://www.zerohedge.comUpdate: 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...