Fed Goes Hog-Wild with T-Bills, But Repos Drop from a Month Ago, and MBS Shrink by $22 Bn

Bailing out its crybaby-cronies on Wall Street, even when there isn’t a crisis.

by Wolf Richter
Wolf Street

The total amount of repurchase agreements (“repos”) on the Fed’s balance sheet as of December 4, released today, declined to $209 billion, from $215 billion a month ago. These repos included:

— $70 billion in overnight repos, issued on Wednesday morning that unwound today; all prior overnight repos had already unwound.

— $88 billion in multi-day repos with maturities of up to two weeks;

— $50 billion in 42-day repos; of which $25 billion were issued on November 25 and $25 billion on December 2. They will unwind early next year.

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