Following three consecutive days of oversubscription in both the Fed's overnight repo... {image} ... and term repo operations... {image} ... we warned that "this continuing liquidity crunch is bizarre, as it means that not only did the rate cut not unlock additional funding, it actually made the problem worse, and now banks and dealers are telegraphing that they need not only more repo buffer but likely an expansion of QE... which will come soon enough, once the Fed hits 0% rates in 2 months and restart bond buying." We then asked if that will be enough to stabilize the market, responding that for now, we don't ... (full story)