TYB
>https://twitter.com/RealJamesWoods/status/1238576167675977734
I went with Stelter for balance.
Banks Not Coming Close To Testing Upside Of Fed’s New Mega Repos
Initial demand far less than the amounts available totaling $1.5 trillion
The first three of the Federal Reserve Bank of New York’s mega repo operations have drawn far lighter demand than what the central bank is willing to provide.
On Thursday, the central bank shocked observers by announcing it would offer, in addition to its existing slate of loans to major banks, three repurchase agreements, or repos, that would provide eligible banks up to $500 billion per operation over an extended time horizon. The Fed said then it acted to “address highly unusual disruptions in Treasury financing markets associated with the coronavirus outbreak.”
While the overall pool of Fed liquidity has surged, eligible banks, called primary dealers, have thus far have not come close to tapping all the money the central bank can provide via the new slate of interventions.
On Thursday, the Fed’s first mega repo, which was one of four repo interventions that day, saw demand of $78.4 billion versus the half trillion dollar limit. On Friday, two of the repos, which collectively would have offered banks $1 trillion, saw bank demand of $17 billion in one operation, and $24.1 billion in the other. Meanwhile, the amount of money sought by dealers for the weekend was also well short of the Fed’s $175 billion cap, at $45.15 billion.
Collectively, the amount of temporary liquidity provided to financial markets by way of its repo interventions fell from $361.5 billion on Thursday to $344.65 billion on Friday.
https://www.wsj.com/articles/banks-not-coming-close-to-testing-upside-of-feds-new-mega-repos-11584112995
https://archive.is/30R7F