Federal Reserve just injected $5.2 billion into the banking system through overnight repos.
Sixth largest liquidity injection since COVID, bigger than anything during the dot-com bubble peak.
😯 Just the Fed casually pumping $5.2B into banks overnight because someone's balance sheet decided to have a little Wednesday crisis.
Banks definitely use emergency liquidity windows when they're flush with cash and everything's perfectly healthy - that's how this works, right?😗
Here's what actually happens next: either this was a one-off panic (someone fat-fingered their collateral math), or we're watching the first crack 🔥 If repos stay elevated through next week, start watching credit spreads and which banks suddenly get very quiet about their Treasury holdings.
January's always fun for liquidity anyway - tax settlements, year-end unwinds catching up.
If the Fed's already here in mid-December, February's going to be interesting 🥳
