Remember, Its not QE4 or banks meltdown !! [
link to www.zerohedge.com (secure)]
Well, moments ago the NY Fed did publish it latest weekly "Statement Regarding Repurchase Operations" as expected laying out the Fed's expected repo operations for the period December 13 - January 14... and it blew Skyrm's expectations out of the water
Here is how Curvature's Skyrm summarized this:
One word: "Massive". A few more words: The largest series of RP operations ever! The Fed announced it's RP operations schedule for the next few weeks and it's huge!
Here are my calculations:
There are two existing $25 billion term operations over the Turn already in the market totaling $50 billion
The Fed committed to at least a $150 billion overnight operation on year-end
A REG-start year-end operation on the day before year-end of $75 billion
Between now and year-end a total of 6 term RP operations totaling $225 billion
All total, I count the Fed committed to pump $500 billion in the Repo market over year-end. Naturally, the Turn (12/31-1/2) rallied a bit today. Trading from 4.25% yesterday to 3.80% today