REPO

As if we do not have enough acronym to worry about and a million “metric” to look at and “tell” us what is happening, here comes the REPO. 

Unfortunately, I ignored or severely underestimated the impact of the REPO on the market and paid dearly for it.  So from here on, I am watching it till we get another word from J. Powell.  The reason I did ignore it, is that he (Powell) initially claimed that is going to be a little bit of cash injected for liquidity overnight to “make sure” we do not have any hiccups.  But it turned out to have increasing maturity rate up to 4 and 6 weeks, that is not over night.  Also, it is already over 1/2 a trillion dollar, that is QE not REPO.