- traditionally a time funding shortages - and into Q4, this morning's $75BN repo operation showed clear signs of stabilization in the overnight funding market, when "only" $65.75 billion in collateral was accepted by the Fed in exchange for reserves, marking the first non-oversubscribed repo operation since Wednesday.

Specifically, the NY Fed announced that it had accepted $49.7BN in Treasurys, $0.6BN in Agency paper and $15.45BN in MBS all at the 1.80% IOER stop out rate (with the rate however rising as high as 1.84% on TSYs and 1.87% on MBS).

This was just under $10 billion less than Friday's repo op, driven by a $10 billion drop in Treasury collateral parked at the Fed.