Fed Outstanding Repo Transactions March 03-26, 2020

Author: Robert Eisenbeis, Ph.D., Post Date: March 26, 2020

Fed Outstanding Repo Transactions March 3 – March 26

Fed Outstanding Repo Transactions March 2020 Overnight & Term Repos ($Billions). Chart by Robert Eisenbeis, Ph.D.

Liquidity needs in the repo market appear to have stabilized and transactions proposed are far below the amounts that the Fed is willing to buy from dealers. There was a slight bump up in demand for overnight funding, no doubt due to the uncertain status of the stimulus bill, which was resolved early Thursday morning.

The new claims for unemployment insurance are literally off the charts and is a harbinger for what we might expect to see next week. The support packages should ease the financial burdens for both the unemployed as well as businesses, but they will not bring back demand or spur production in the short run until the virus has run its course.

Eisenbeis Chart - Unemployment March 26, 2020

Robert Eisenbeis, Ph.D.
Vice Chairman & Chief Monetary Economist
Email | Bio

cumber map
Cumberland Advisors® is registered with the SEC under the Investment Advisers Act of 1940. All information contained herein is for informational purposes only and does not constitute a solicitation or offer to sell securities or investment advisory services. Such an offer can only be made in the states where Cumberland Advisors is either registered or is a Notice Filer or where an exemption from such registration or filing is available. New accounts will not be accepted unless and until all local regulations have been satisfied. This presentation does not purport to be a complete description of our performance or investment services. Please feel free to forward our commentaries (with proper attribution) to others who may be interested. It is not our intention to state or imply in any manner that past results and profitability is an indication of future performance. All material presented is compiled from sources believed to be reliable. However, accuracy cannot be guaranteed.