As month-end looms, demand for dollar liquidity is accelerating dramatically with today's Fed operation oversubscribed - with around $92 billion of demand for the Fed's $75 billion offering...
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This is the heaviest demand yet for this new Fed liquidity spigot...
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As we noted previously, some banks appear to have been simply waiting to get closer to the quarter-end before tipping their cards: after all, just like the Discount Window, the repo operation has become the modern "stigmatizing" equivalent, and if reporters or clients get a whiff that a bank is in a dire liquidity state, the consequences could be dramatic.
Never mind though, it's probably all transitory.
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