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!