🔻 The repo market starts to creak — even despite the slowdown in QT

The Fed has slowed quantitative tightening: the monthly limit on treasuries has been reduced from $25 billion to $5 billion.

But the market has not found it easier.

📉 Banks are still losing liquidity, funds are tightening, and demand for short-term money has sharply increased.

The Standing Repo Facility (SRF), which was supposed to alleviate the situation — is hardly used. The rate is unfavorable, conditions are complicated. As a result — a hidden shortage of dollar liquidity.

⚠️ This is a wake-up call: repo is the basic infrastructure of finance. And if something breaks there — it's not just a creak, but a potential crisis under the hood.

This is exactly how problems started in 2008 and 2019.

💡 Against this backdrop:

– demand for reliable assets is increasing — gold, bitcoin, treasuries;

– the risk of overnight rate spikes is growing;

– the bond market is becoming less and less manageable.

QT is proceeding — and the system is already starting to convulse.