The surge in usage pushed the total to not only well above the Covid crisis high of $285BN, but was the fifth highest on record!

This is a topic we have been closely following in the past few days...

Zoltan On The Coming QE Endgame: "Banks Have No More Space For Reserves"

Fed Alert: Overnight Reverse Repo Usage Soars Above Covid Crisis Highs

... for one reason: the repo market is on the verge of another crisis, with banks sending the Fed a clear SOS signal - they can't take up any more Fed reserves (and there is still about $1 trillion on deck even assuming an accelerated taper).