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Much like the criminal government, the criminal central bank just can’t tell the truth about anything. If they even know what’s going on. With REPO BUCKS! they do not.

Federal Reserve officials have attributed the problem to a rush of corporate tax payments and settlement for an unusually large settlement in Treasury bond auctions.

However, the BIS said that while those two factors help explain some of the problems, they fall short of a full accounting.

“None of these temporary factors can fully explain the exceptional jump in repo rates,” the bank wrote.

Other factors the institution cited include the heavy reliance on the “Big Four” banks for funding, the increased role that hedge funds are playing on the demand side for funding, and the adjustments that market participants are making following an extended period of ample reserves that has changed over the past two years.

Fed officials have puzzled over the banks’ unwillingness to lend into the market when the Sept. 17 disruption happened. Discussion has centered around the role that post-financial crisis capital regulations have played as well as the interest the Fed continues to pay on bank reserves.

Such reluctance in the future poses continued threats, the report said.

Puzzling! A total mystery that we will never understand. Ah well, back to the TeeVee. It’s only the economy and whatnot. Sorcery = a puzzle.