Jonas says: “From a macroecononic perspective, the Fed has to be annoyed. The repo market is not here to help dealers make money. It’s how the Fed implements monetary policy.” Perhaps, the Treasury will finally crack the whip. It might have to.
The Treasury was forced to reopen some notes in the first week of October, a response which is credited with reducing fails to the reported $1.3 trillion. Such drastic action was also taken following 9/11 when cumulative fails to deliver in treasuries hit $1.3
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