Repo Hits Massive $120 Billion
GFBP prop indicator will go flat MOC today.
O/N and 29 day #Repo today in total climbs to a massive $120.3 Billion and hit a 5 day Avg. high of $76.6 Billion, Reverse Repo's continue to be zero and nobody is asking:
Why is repo climbing above $100 Billion?
Where is the stress causing this liquidity need?
Is this yield spike cause or symptom?
Is the reduction in QE nothing more than theater, being covered now by repo?
With rates higher when will equities get the message?
Here is the repo chart:
So are we going to just act surprised when the equities turn and many will say, where did the catalyst come from? Will the repo use be enough to cover funding needs?
With all the stimulus that has been front loaded here are we not to be suspicious of who is exactly in need of all this o/n repo? #debt #leverage
Take a look at this recent Yardeni Research chart which was shared by @northmantrader, both of whom are always #mustread
Check out this Russell 2000 “Value”
Considering the longest economic expansion is now “officially over,” ending the longest streak in history at 128 months. At what point are investors going to have to readjust their overall outlook?
Finally, a few of our proprietary indicators are abdicating for risk to be shed here as the equity asset class continues to over stretch, we should see some position juggling here into the close of today, we will keep you posted as to the GFBP tracker for those interested in following along. We continue to offer this first month free for all to see if its something worthy to follow and add as a subscription. We hope this information in this quick note and our tracker offer some value. Please comment or allow us an opportunity to better our informational pieces by offering some suggested areas of interest.
-Magnelibra Econemotions
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