The New York FED (who performs open market operations for the FED) did a pretty giant REPO today.
They did a $73 billion overnight (1 day) repo and an additional $31 billion of 15 day transactions–totaling over $104 billion.
Previously they had hit $87 billion in a day–much less than today. Oh well–a billion here and a billion there.
What does this mean to me? Nothing much now–I guess banks are still short of cash. Normally these are only meaningful for us regular folks in hindsight–big transactions take place and later we find some institution in trouble. Time will tell. Generally I think the FED is BS’ing us in this area.
Tomorrow we find out how large the FED balance sheet has grown and we can ‘net out’ the REPO transactions and find out how much true QE they did (outright purchases of securities for long term holding)–that info is released at noon every Friday.