U.S. Repo Market Tracker. October 11, 2019

Summary

Repo Market: No major spikes in rates. Average daily intervention since 9/17 jumps to $65bn; Fed commits to overnight repo operations at least through January 2020; Several FOMC members suggest introducing standing repo facility.

Key points

• Key points:
• Fed Balance Sheet: Fed will purchase $60bn in Treasuries per month, “to ensure that the supply of reserves remains ample”. In addition, Fed will continue purchasing Treasuries (±$20bn per month) related to the reinvestment of Agency/MBS principal payments
• U.S. Treasury: Treasury general account at $297bn (up $164bn since 8/7); near “stable” levels
• Financial Markets: No evidence of significant contagion

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