Repo interventions to stay at elevated levels

Although the year-end cash squeeze passed without any jump in borrowing costs, the New York Fed plans to maintain its interventions in short-term funding markets at an elevated level.

On Tuesday, banks gobbled up $82B in temporary liquidity in the form of overnight and two-week repo loans.

“History has shown us that whenever these sorts of programs are introduced, they tend to last longer than what the Fed expects,” said Nick Maroutsos, co-head of global bonds at Janus Henderson, comparing the case to the unwinding of QE.

https://seekingalpha.com/news/3531890-repo-interventions-to-stay-elevated-levels