“Massive… Huge… Largest Ever”: Fed Will Flood Market With Gargantuan $500 Billion In Liquidity To Avoid Year-End Repo Crisis

Remember, Its not QE4 or banks meltdown

www.zerohedge.com/markets/avoid-repo-crisis-fed-will-flood-market-gargantuan-365-billion-year-end-liquidity

Well, moments ago the NY Fed did publish it latest weekly “Statement Regarding Repurchase Operations” as expected laying out the Fed’s expected repo operations for the period December 13 – January 14… and it blew Skyrm’s expectations out of the water

Here is how Curvature’s Skyrm summarized this:

One word: “Massive”. A few more words: The largest series of RP operations ever! The Fed announced it’s RP operations schedule for the next few weeks and it’s huge!

Here are my calculations:

There are two existing $25 billion term operations over the Turn already in the market totaling $50 billion

The Fed committed to at least a $150 billion overnight operation on year-end

A REG-start year-end operation on the day before year-end of $75 billion

Between now and year-end a total of 6 term RP operations totaling $225 billion

All total, I count the Fed committed to pump $500 billion in the Repo market over year-end. Naturally, the Turn (12/31-1/2) rallied a bit today. Trading from 4.25% yesterday to 3.80% today

 

h/t TIO