Reverse Repo has ~$71B left until it is fully drained. QT continues unabated.
The question that remains is whether this will cause a September 2019-like overnight rate spasm that forces the Fed to step in with extraordinary measures or whether the structural changes they've made over the last 5+ years will work. If the reverse repo market drains without any rate spasms, QT will move its focus to bank balance sheets.
Something to pay attention to.
what's your hunch?
I've given up on understanding the fiat system, but I applaud your efforts
I just don't see the fed moving, nor do I see the markets caring.
The repo and fed target rates are lower than the market rates already. Dropping them won't fix it. Bad news brewing.
Now a cash injection, perhaps...
SOMEBODY BETTER REFILL MY MILKSHAKE 🥛
Looks like it stayed close to 0 for about 1 year on that chart.
Cue covid 2.0
It has been speculated, The reason there was treasury market dysfunction is because insiders knew about the coming of COVID19
It's usually the unknowns/unobserved where emergency measures are coming from.
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