🚨 The Federal Reserve injected $5.2 billion into the U.S. banking system
The overnight repos are not a fleeting technical event, but a clear message from the money market to the monetary policy maker.
Repo operations are not 'monetary stimulus' in the traditional sense, but they are a sensitive gauge of the underlying tension in the financial system. When demand for them rises, it means that banks and financial institutions:
• Prioritize immediate liquidity.