Pump it up! US Fed adds $104 billion in liquidity to markets in just one day


15-11-19 09:56:00,

The Federal Reserve, which has been boosting liquidity since mid-September, injected $104.293 billion to the financial markets on Thursday.

The addition of liquidity came in two parts, with one happening via overnight repurchase agreements totaling $73.593 billion. The other was from a $30.7 billion 13-day repo operation. In both interventions, dealers took less money than the Fed was willing to provide.

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The US Central Bank’s market operations are aimed at ensuring that the financial system has enough liquidity, after the short-term funding rate spiked to 10 percent from two percent overnight in September. The effective Fed-funds rate stood within the target rate on Wednesday, at 1.55 percent. The broad general collateral rate for repo trading stood at 1.54 percent.

The Federal Reserve’s practice of adding and subtracting liquidity from short-term markets to manage short-term interest rates goes back decades. However, it is raising concerns among analysts and portfolio managers who claim that the size of recent operations are large and may not be enough to solve lending pressures.

For more stories on economy & finance visit RT’s business section

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The Fed’s Liquidity Response Is Too Little Too Late – But That Was Always The Plan…


02-11-19 08:35:00,

Authored by Brandon Smith via Alt-Market.com,

The globalists and banking elites have been running the “order out of chaos” scam for a long time, centuries in fact. One thing that practice does is make people of otherwise average intelligence appear brilliant. One thing that organized conspiracy does is make a group of highly vulnerable criminals appear omnipotent and untouchable. Ultimately, it’s all about time. The globalists have had lots of time to tune and refine their methods for manipulating the collective psyche of the masses.

They make mistakes often, but as long as no one confronts them directly and removes these people from the equation, they simply set up shop elsewhere under a different name using different masks and continue their insidious work. As long society is still stricken with ignorance and assumes that such conspiracies are “impossible”, the elites have a free hand to victimize the population further. As long as academic idiots misinterpret Occam’s Razor and insist that the evidence of conspiracy does not matter because it does not fit with their narrow notion of “the simplest explanation”, they prop up the banking cartel and allow it to thrive.

On the positive side, I see an awakening taking place among a subset of the population which is savvy to the games of the globalists. I believe this subtle wave of analytical samurai has the elites worried; they realize that time for them is, for once in history, starting to run out. One day soon, they may find themselves the direct targets of a revolution, and they don’t like that idea.

Hence, the globalists need a plan, a con game of epic proportions on top of one of the largest economic bubbles in recent history. The plan relies first on a tried and true weapon of the elites: Co-option of the people that oppose them. And how does one co-opt a movement? By taking over their leadership. Second, for global change the cabal needs a global distraction, or a firestorm of numerous distractions to keep the public enthralled or in fear. Third, they need to divert blame away from themselves by presenting the public with believable scapegoats.

When it’s all over, they want people dazed and shell-shocked,

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As Liquidity Evaporates, Fed’s Third Bill POMO Is 5.5 Oversubscribed, Most Yet


22-10-19 05:52:00,

Earlier this morning, when discussing today’s oversubscribed term repo and latest funding squeeze, we previewed today’s T-Bill POMO saying,  “and now we await today’s T-Bill Pomo result for the final proof of funding deterioration, as we expect today’s operation will be the most oversubscribed yet, confirming that dealers are scrambling to convert their “safe” assets into dollars as fast as possible.”

Less than two hours, that’s precisely what happened, when the Fed announced that in its third $7.5 Billion Treasury Bill POMO, the Fed received a whopping $41.472 billion in “liquidity” requests, i.e. Dealers submitted $41.5BN in bids for the maximum $7.5BN in Fed “Reserve Management” (note: not QE) purchases.

As such, the operation was 5.5x oversubscribed, a notable increase from the first two POMOs conducted last week, when operations were 4.3x and 4.8x oversubscribed.

While we already predicted the punchline earlier, here it is again: demand for the Fed’s permanent liquidity injection is increasing with every operation, even as overnight repo saw a modest increase in dealer interest while term repo was oversubscribed for the first time in 4 weeks.

As such the question we have been asking for the past month – and one which Elizabeth Warren should also consider asking of Steven Mnuchin – remains: why are banks still so desperate for liquidity even though the Fed has now made clear the Fed’s balance sheet will expand to accommodate all reserve needs, and why do they so stubbornly refuse to approach the interbank market for their funding needs? In short, what do they know about the banking system that we don’t?

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