U.S. Fed's reverse repo volume surges to record half a trillion dollars

Discussion in 'Fixed Income' started by kmiklas, Jun 9, 2021.

  1. kmiklas

    kmiklas

    Is this a way to test, in the short term, what happens when liquidity is removed from the system?

    It seems counter-productive to issue QE while at the same time soaking liquidity up with reverse repos.

    What I really don't understand: if a reverse repo pays 0%, why bother... why not just hold in ca$h?

    If anyone can shed some light I'd appreciate it.

    https://www.reuters.com/article/us-usa-fed-reverse-repo-idUSKCN2DL29J
     
  2. taojaxx

    taojaxx

    kmiklas likes this.