WTF Chart Of The Day: Fed Soaks Up Record $200 Billion In Year End Excess Liquidity (Christmas, rating)

[CDusr]

LOL. Right before Christmas Eve.

WTF Chart Of The Day: Fed Soaks Up Record $200 Billion In ...
quote:
A week ago the Fed announced its latest expansion to its Fixed-Rate Reverse Repo facility, which boosted the maximum allotment per counterparty to a whopping $3 billion from $1 billion (initially this was "only" $500 million), to wit: "this week the Committee authorized the Desk to modify the terms of the exercise. The maximum allotment cap will be increased to $3 billion per counterparty per day from its current level of $1 billion per counterparty per day, effective with the operation on Monday, December 23, 2013." Some wondered why. Today we got the answer, when the Fed announced that an unprecedented $198 billion (that's 20% of a trillion) among 102 entities was reverse repoed to it (an average of just under $2 billion per counterparty) in what can only be characterized as the most grotesque temporary open market operation conducted by the Fed in history.

[greywar]

and what was it last year? This normally soars at the end of the year as banks have balance sheet issues.

[CDusr]

Originally Posted by greywar

and what was it last year? This normally soars at the end of the year as banks have balance sheet issues.

Yes, certain times of year, particularly year end are significant.

However, I looked for Nov and Dec 2012 and the biggest op I found for TOM was. Not much activity, total looked to just be little over 3bil.

4.3bil submitted and 2.25bil accepted.

Feel free to double check yourself though.