When you linking your Twitter Account Market Wire News Trending Stocks news and your Portfolio Stocks News will automatically tweet from your Twitter account.
Be alerted of any news about your stocks and see what other stocks are trending.
TLT - Could Quantitative Tightening Cause Another Liquidity Crisis In Repo Markets?
iShares 20+ Year Treasury Bond ETF
2024-05-14 06:25:00 ET
Summary
Quantitative tightening (QT) has been underway since June 2022, with the Fed shrinking its balance sheet in order to bring reserves and liquidity in the financial system back down to more normal levels.
The overnight reverse repo facility is now getting down to low levels, raising questions about whether another breakdown in financial market liquidity and stress in short-term funding markets could occur.
At this time, we believe a repeat of the unexpected rate spike of September 2019 is unlikely. Current liquidity conditions are normal.
What is the repo market and how did it change after the Global Financial Crisis (GFC)?