Demand for Fed Reverse Repo Surges to New High Amid Cash Glut (Overnight Reverse Repos Surged To New High For Third Consecutive Day)

I call this the “Great Slosh.”

(Bloomberg) — Usage at the Federal Reserve’s facility for overnight reverse repurchase agreements Wednesday surged to a new record high for a third consecutive day.

Seventy-three participants took $813.6 billion, which exceeded Tuesday’s all-time high of $791.6 billion

The facility pays an overnight rate of 0.05%, helping to temporarily reduce the quantity of reserve balances in the banking system

Yup, raising the overnight rate to 0.05% didn’t really slow the slosh.

The Great Slosh!

One thought on “Demand for Fed Reverse Repo Surges to New High Amid Cash Glut (Overnight Reverse Repos Surged To New High For Third Consecutive Day)

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