When Temporary Seems Permanent: Overnight Repos Hit All-time High, $2.366 TRILLION (MOVE Bond Volatility Index Near Covid Recession High)

by confoundedinterest17

When temporary seems permanent?

Banks get to park money at The Federal Reserve overnight in the form of repurchase agreements (or repos). But as inflation is raging in the US, banks have parked a record $2.366 TRILLION at The Federal Reserve.

The MOVE bond volatility index keeps rising as inflation roars and The Fed fights back,

The US bond volatility index is now almost as high as during the Covid Crisis and approaching financial crisis levels.