Post #8392

🏦 Fed Repos Spike to 5-Year High A $29.4B overnight repo just hit — the largest since 2019. That means the Fed had to lend cash to banks in exchange for Treasuries, signaling short-term funding stress. ➡️ This isn’t QE — it’s a liquidity backstop, not balance sheet expansion ➡️ The same pattern appeared in late 2019, right before the Fed ended QT and liquidity returned ➡️ Rising repo activity suggests cracks in the funding system as reserves tighten Each time repo activity spikes, it marks a shift in liquidity dynamics. The question is whether this time signals another pivot or just temporary pressure before something bigger breaks. 🐴Powered by White Horse