It’s so hard to keep up with QE Infinity at this point.
In other words, instead of QE4 the Fed will flood the repo market with a firehose of liquidity.
Here is how Curvature’s Skyrm summarized this:
One word: “Massive”. A few more words: The largest series of RP operations ever! The Fed announced it’s RP operations schedule for the next few weeks and it’s huge!
Here are my calculations:
There are two existing $25 billion term operations over the Turn already in the market totaling $50 billion
The Fed committed to at least a $150 billion overnight operation on year-end
A REG-start year-end operation on the day before year-end of $75 billion
Between now and year-end a total of 6 term RP operations totaling $225 billion
All total, I count the Fed committed to pump $500 billion in the Repo market over year-end. Naturally, the Turn (12/31-1/2) rallied a bit today. Trading from 4.25% yesterday to 3.80% today
A firehose is generally reserved for a fire. In other news, those main excuses for this, about taxes and treasury swaps, appear to be falling apart.