There’s not much we can add here: after all, we have beaten to death the topic of the Fed’s soaring reverse repo facility, but while many were expecting fireworks for the month and quarter-end, nobody expected that a record 90 counterparties (up from 74 on Tuesday) would park an additional $150 billion in loose liquidity (for context, all of QE2 was $600 billion).
The Fed’s reverse repo facility where it is now earning 0.05% compared to the 0.00% rate prior to the June FOMC, bringing the total reverse repo usage to a mindblowing $991.9 billion, after printing a record $841.2 billion on Tuesday (across 74 counterparties).
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