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Another repo crunch at yearend?

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The Fed needs to add about $350 billion from its September trough, or another $100 billion, to avoid another repo crunch. The Fed should have paid more attention to the usage of the RRP facility. Excess liquidity was removed by the end of Q1 2018. Banks were not the source of the repo problem - the Fed was.

Ned Davis Research | Fixed Income | Focus | Bi-Weekly

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