The Fed did a mammoth net add of $10 billion by adding that amount of overnight repos against no expirations. As a result the 5 day net came back to just above neutral. The rate at the auctions was just above the Fed Funds target. I had noted in yesterday’s article, It’s the Liquidity Stupid, that the Fed was way behind schedule from prior years in delivering the Christmas goose. They must have heard me. Click here to download complete report in pdf format (Professional Edition Subscribers).
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