A major source of liquidity for buying U.S. government debt is draining. Here's why that's bad news for the Fed and the market
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A Federal Reserve repo facility is back in focus as a gauge of liquidity as U.S. stocks stumble and investors brace for another barrage of Treasury borrowing to fund the U.S. government’s large budget deficit.
Funds parked by institutional investors short-term at the New York Fed’s overnight reverse repo facility have dropped to $1.1 trillion from a peak of about $2.5…
This story from marketwatch.com was posted on 2023-10-27 by @arcticc.