$500 billion. This is the sum the Fed has already pumped into the repo market since the crisis there started. On September 17, 2019, the secured overnight funding rate - a broad measure of the cost of borrowing cash overnight collateralized by Treasury securities, based on the repurchase transactions - more than doubled, as the chart below shows, while the intraday range jumped to about 700 basis points! As a reminder, we are talking about the repo market, where interest rates usually fluctuate in an intraday range of 10, or at most 20 basis points. But why we are writing about some obscure market at all? Well, a ... (full story)