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Tag Archives: Repo rate

Goodbye quantitative tightening

Following this week’s sharp movement in the USD overnight repurchase agreement (repo) rate, people are wondering what the US Federal Reserve (Fed) can do to counter a similar event in the future.One measure of the USD overnight repo rate (there exist several) spiked to 6% on Tuesday 17 September, probably due a scarcity of bank reserves at the Fed at a time when US corporates needed cash to pay their taxes as did investors/banks (probably to absorb strong US Treasury issuance. Hence, cash...

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