SAM625 USAF G5 returning to JBA from a Bedford, MASS ground stop
Royal Netherlands AF MMf38 Airbus A330 departing Dulles Int'l after an overnght
58-0112 USAF KC-135 tanker over Not AF1 Joe in Delaware..took over for IGOR17 earlier
still nothing new here lackeys
keep trying though...
kek
Powell Just Launched $2 Trillion In "Heat-Seeking Missiles": Zoltan Explains How The Fed Started The Next Repo Crisis
Last week, amid the fire and brimstone surrounding the market's shocked response to the Fed's unexpected hawkish pivot, we noted that there were two tangible, if less noted changes: the Fed adjusted the two key "administered" rates, raising both the IOER and RRP rates by 5 basis points (as correctly predicted by Bank of America, JPMorgan, Wrightson, Deutsche Bank and Wells Fargo while Citi, Oxford Economics, Jefferies, Credit Suisse, Standard Chartered, BMO were wrong in predicting no rate change), in an effort to push the Effective Fed Funds rate higher and away from its imminent rendezvous with 0%.
What does this mean? As Curvature Securities repo guru, Scott Skyrm wrote last week, "clearly the Fed intends to move overnight rates above zero and drain the RRP facility of cash." Unfortunately, the end result would be precisely the opposite of what the Fed had wanted to achieve. But what does this really mean for overnight rates and RRP volume? As Skyrm further notes, the increase in the IOER should pull the daily fed funds rate 5 basis points higher and, in turn, put upward pressure on Repo GC. Combined with the 5 basis point increase in RRP, GC should move a solid 5 basis points higher, which it has. The problem, as Skyrm notes, is that the Fed's technical adjustment would do nothing to ease the RRP volume:
When market Repo rates were at 0% and the RRP rate was at zero, ~$500 billion went into the RRP. Well, if both market Repo rates and the RRP rate are 5 basis points higher, there's no reason to pull cash out of the RRP. For example, if GC rates moved to .05% and the RRP rate stayed at zero, investor preferences to invest at a higher rate would remove cash from the RRP. Bottom line:with both market rates and RRP at .05%, there's really no economic incentive for cash investors to move cash to the Repo market. Or, as we summarized, "the Fed's rate change may have zero impact on the Fed's reverse repo facility, or the record half a trillion in cash parked there."
In retrospect, boy was that an understatement, because just one day later the already record usage of the Fed's Reverse Repo facility spiked by a record 50%, exploding to a staggering $756 billion (it closed Friday at $747 billion) as the GSEs.
>>64017 pb Fed's Reverse Repo Soars To Stunning $756 Billion, Spikes By $230 Billion Overnight.
Needless to say, flooding the Fed's RRP facility and sterilizing reserves is hardly what the Fed had intended, and as Credit Suisse's own repo guru (and former NY Fed staffer) Zoltan Pozsar wrote in his post-mortem, "the re-priced RRP facility will become a problem for the banking system fast: the banking system is going from being asset constrained (deposits flooding in, but nowhere to lend them but to the Fed), to being liability constrained (deposits slipping away and nowhere to replace them but in the money market)." What he means by that is that whereas previously the RRP rate of 0.00% did not reward allocation of inert, excess reserves but merely provided a place to park them, now that the Fed is providing a generous yield pick up compared to rates offered by trillions in Bills, we are about to see a sea-change in the overnight, money-market, as trillions in capital reallocate away from traditional investments and into the the Fed's RRP.
In other words, as Pozsar puts it, "the RRP facility started to sterilize reserves... with more to come." And just as Deutsche Bank explained why the Fed's signaling was an r* policy error, to Pozsar, the Fed also made a policy error - only this time with its technical rates - by steriling reserves because "it’s one thing to raise the rate on the RRP facility when an increase was not strictly speaking necessary, and it’s another to raise it “unduly” high – as one money fund manager put it, “yesterday we could not even get a basis points a year; to get endless paper at five basis points from the most trusted counterparty is a dream come true."
moar
https://www.zerohedge.com/markets/powell-just-launched-2-trillion-heat-seeking-missiles-zoltan-explains-how-fed-started-next
all pb
>>64248, >>64250 Liquidity drying up across markets, fueling big swings
>>64313 Federal Reserve Bank of NY Reverse Repo. Operations-week of June 13th-$3.11T
habs a pretty good handle on it at this point.
basically these continue and getting larger-cause they are guaranteed to go on with the 5 basis point payout-eventually these banks will 'run out of cash' cause they've parked it at the FRB-pointed this out on the weekly updates.
The FRBNY know exactly wut they are doing here because the short-term issues are all at or below 0% (VERY negative if adjusted for real inflation) so these asshat bankers will just park the money at eh FRB for a risk-free 5 basis points rather then pie them into shor term-notes that are gonna be really volatile during the period you hold them.
Eventually all this will cause a scramble for dollars that just are not available so they will start selling assets and down go the markets.
The dollar will get juiced upwards and things like Ag/Au will get monkey-hammered.
The article already mentions it though...it doesn't habben overnight..slow-motion train-wreck until it's not
American Airlines Flight Cancellations Set to Continue Monday
The series of flight cancellations from American Airlines this weekend will continue to plague Monday travelers.
Almost 100 flights from the airline have already been canceled for June 21, according to a representative from American Airlines Group Inc. That’s following 123 flights canceled on Saturday and at least 178 on Sunday. “The first few weeks of June have brought unprecedented weather to our largest hubs, heavily impacting our operation and causing delays, canceled flights and disruptions to crew member schedules and our customers’ plans,” American Airlines said in a statement. Combined with labor shortages and increased bookings, that’s caused the airline to adjust some of its flights through mid-July, the company said. Airlines have struggled to deal with the spike in demand for air travel as people across the globe get vaccinated and embark on trips once again. Earlier this month, the number of daily U.S. air travelers rose above 2 million for the first time since the pandemic started, according to the Transportation Security Administration.
Industrywide, a total of 272 flights within, into, or out of the U.S. were canceled on Saturday and 5,560 were delayed, according to data from FlightAware.com. Sunday saw 289 flights canceled and 3,188 delayed as of 5 p.m. in New York.
https://www.bnnbloomberg.ca/american-airlines-flight-cancellations-set-to-continue-monday-1.1619444
blaming it on the weather......