The FED was in the market yesterday for $53 billion in a overnight operation–then today they came in for $100 billion in 1 day overnight repo–not sure I remember a $100 billion repo in the past–most have been in the $40-$50 billion range lately as the Fed tried to cut back on the ‘punch’.
Even this huge liquidity operation was $9 billion short of what banks were asking for–they submitted $109 billion in liquidity requests.
I don’t fully understand all of the ins and outs of this marketplace–but anytime something out of the ordinary happens it should be noted–obviously someone needs some liquidity.
You can see repo operations here.
I should add that banks requested $70 billion in 14 day borrowings–but the FED only gave them $20 billion—wierd.