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Mon Dec 2, 2019, 08:58 PM

FED PUMPS ANOTHER $98 BILLION...

New York Fed Adds Liquidity Amid Heavy Demand for Year-End Funding

Interventions ensure markets have enough liquidity and short-term borrowing rates remain well-behaved

By Michael S. Derby
Updated Dec. 2, 2019 12:42 pm ET

The Federal Reserve Bank of New York again saw very strong demand for liquidity aimed at helping financial markets navigate the turn of the year.

The demand once again arrived as the Fed added temporary liquidity to financial markets Monday. All together the central bank pumped in $97.9 billion in two parts. One was via overnight repurchase agreements, or repos, that totaled $72.9 billion. The other was via 42-day repos.

While the Fed took all the securities that dealers offered it for the overnight repo, the longer-term operation saw eligible banks offer $42.55 billion in securities versus the $25 billion the Fed took. That level of interest was a replay from the last 42-day repo operation held Nov. 25, when eligible banks submitted $49.05 billion in securities against the $25 billion the central bank accepted.


The robust demand for year-end liquidity could alter the path of future longer-term Fed interventions and induce the central bank to increase their size. Central banks want to ensure that markets remain well behaved over year end, and they have signaled they will be flexible in achieving that. The Fed has already increased the size of other temporary operations, making it possible future term operations could be bigger as well.

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https://www.wsj.com/articles/new-york-fed-adds-97-9-billion-to-markets-11575301812

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Reply FED PUMPS ANOTHER $98 BILLION... (Original post)
RCW2014 Dec 2 OP
Badsamm Dec 2 #1
uncledad Dec 2 #2
RCW2014 Dec 2 #3
uncledad Dec 2 #4
nolidad Dec 3 #5

Response to RCW2014 (Original post)

Mon Dec 2, 2019, 09:10 PM

1. When it does collapse, this world will turn upside down

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Response to RCW2014 (Original post)

Mon Dec 2, 2019, 11:05 PM

2. Smart money is taking profits

They can smell the smoke from an ocean away.

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Response to uncledad (Reply #2)

Mon Dec 2, 2019, 11:07 PM

3. Where they getting the "green" Unc? Printing presses?

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Response to RCW2014 (Reply #3)

Mon Dec 2, 2019, 11:19 PM

4. Digits required, digits transfered for paper promise or the riots.

FED is all digits. Hong Kong exposure does not show up in US markets. Bank transfers FED digits to...

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Response to RCW2014 (Original post)

Tue Dec 3, 2019, 11:34 AM

5. When this house of cards built on sand falls............

It is going to be far worse than 2008 or 1929

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