FAST FIVE: NY Fed To Conduct Third Consecutive Repo Operation On Thursday At 8:15am
The Thursday overnight repo op will be the same size as the previous two, or $75 billion, which means that once again investors will be watching if the offering will be oversubscribed as it was today, when over $5 billion in Primary Dealer bids did not find the liquidity they needed.
Primary Dealers will be permitted to submit up to two propositions per security type.
There will be a limit of $10 billion per proposition submitted in this operation.
Those wondering what tomorrow's general collateral repo rate will be, it will be revealed on Thursday morning shortly before 8am, or minutes before the repo is set to take place.
If the rate soars again as it did on Tuesday, expect more “technical difficulties” and more delays, as the market makes its displeasure clear to Powell.