... and which together with the oversubscribed $30BN term repo discussed below, means the Fed has injected $68BN in liquidity for today's market needs.

The repo market was supposed to be fixed in September; then the year-end liquidity flood was supposed to definitely fix the repo market. Well, it is now mid-February and moments ago the Fed just reported it conducted the third oversubscribed term-repo operation as the liquidity shortage among dealers appears to persist!

Dealers submitted $40.4BN in Treasurys (at a 1.58% stop out) and $13.25BN in MBS (at a 1.60% stop out) for a total of $53.65 of which $30BN was accepted.