{"id":51700,"date":"2020-03-10T08:49:30","date_gmt":"2020-03-10T13:49:30","guid":{"rendered":"https:\/\/olduvai.ca\/?p=51700"},"modified":"2020-03-10T08:49:35","modified_gmt":"2020-03-10T13:49:35","slug":"funding-freeze-getting-worse-dealers-demand-record-216bn-in-liquidity-from-fed-repo","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=51700","title":{"rendered":"Funding Freeze Getting Worse: Dealers Demand Record $216BN In Liquidity From Fed Repo"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/www.zerohedge.com\/markets\/funding-freeze-getting-worse-dealers-demand-record-216bn-liquidity-fed-repo\">Funding Freeze Getting Worse: Dealers Demand Record $216BN In Liquidity From Fed Repo<\/a><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Yesterday, when showing the sudden spike in the FRA\/OIS spread &#8211; a key gauge of banking-sector risk which measures dollar shortages &#8211; we&nbsp;<a href=\"https:\/\/www.zerohedge.com\/markets\/there-no-liquidity-market-paralyzed-fraois-explodes\">warned that liquidity&nbsp;<\/a>in the market is virtually nil quoting a host of traders who confirmed that it was next to impossible to trade without disruptions, while more ominously, the interbank plumbing appeared to be getting clogged up agian.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/inline-images\/fra%20ois%20march%202020_0.jpg\" alt=\"\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Moments ago we got confirmation when the Fed reported that one day after it expanded its repo operations, there was a record demand for Fed liquidity in both the term and repo operations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With the\u00a0<strong>term repo expanded from $20BN to $45BN\u00a0<\/strong>and the\u00a0<strong>overnight repo ceiling also raised from $100 to $150BN,\u00a0<\/strong>moments ago the Fed announced that it had received the most liquidity demand on record, as Dealers indicated some $93BN in term repo submissions (which thanks to the expanded facility size meant that the oversubscription dropped from a record 3.6x to 2.1x)&#8230;<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/inline-images\/term%20repo%203.10.jpg\" alt=\"\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">&#8230; alongside a fully allotted $123.625BN in overnight repo (out of $150BN eligible)&#8230;<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/inline-images\/overnight%20repo%203.10.jpg\" alt=\"\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">&#8230; for a total of $216BN in indicated liquidity. Of this, $168BN in liquidity was released between the overnight and fully-alloted $45BN term repo facility.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Funding Freeze Getting Worse: Dealers Demand Record $216BN In Liquidity From Fed Repo Yesterday, when showing the sudden spike in the FRA\/OIS spread &#8211; a key gauge of banking-sector risk which measures dollar shortages &#8211; we&nbsp;warned that liquidity&nbsp;in the market is virtually nil quoting a host of traders who confirmed that it was next to [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[303,487,6934,3650],"class_list":["post-51700","post","type-post","status-publish","format-standard","hentry","category-economics","tag-fed","tag-liquidity","tag-repo-market","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/51700","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=51700"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/51700\/revisions"}],"predecessor-version":[{"id":51702,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/51700\/revisions\/51702"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=51700"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=51700"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=51700"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}