| | | The Fed has announced that they've re-channeled their panic into the Repo facility... bumping the just recently expanded $100 billion in the daily/overnight limit up to $150 billion, and the two week from $20 billion to $45 billion...
That does ZERO to provide real support to the market, now, I'd guess... but maybe it will work to keep the banks in the business of losing money faster for a few more days.
I've seen the market tracks left by two broker-dealers imploding already... one in NY, one in Chicago... each causing very linear eccentricities in divergences... straight line trading on an upslope... then straightline trading back down... and only then resuming the normally chaotic trading...
The little guys are getting smoked...
Gold was up 8% earlier tonight... back down now to even, they say, due to selling pressure coming from the need for collateral conversions driven by stocks reaching margin call limits.
The NY Fed has massively increased its overnight and term repo liquidity bailout facilities...
Full Statement below The Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York has updated the current monthly schedule of repurchase agreement (repo) operations.
- Beginning with today’s operation and through March 12, 2020, the Desk will increase the amount offered in daily overnight repo operations from at least $100 billion to at least $150 billion.
- In addition, the Desk will increase the amount offered in the two-week term repo operations on Tuesday, March 10, 2020 and Thursday, March 12, 2020 from at least $20 billion to at least $45 billion.
Consistent with the FOMC directive to the Desk, these adjustments are intended to ensure that the supply of reserves remains ample and to mitigate the risk of money market pressures that could adversely affect policy implementation. They should help support smooth functioning of funding markets as market participants implement business resiliency plans in response to the coronavirus. The Desk will continue to adjust repo operations as needed to foster efficient and effective policy implementation consistent with the FOMC directive.
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