(see commentary below), the results of the now daily overnight repo operation were also published, and confirmed that the liquidity shortage is getting worse again, as the $75BN operation was modestly oversubscribed, as $80.2BN in submissions were tendered.

Specifically, the total Treasury notional submitted for repo was $58.8BN up $9BN from yesterday, Agency securities tendered were a modest $0.6BN, while the amount of MBS rose to $20.85BN, up from $15.45BN, with only $15.89 accepted.