Money Market Update

repo rates and RRP usage temporarily spike due to year-end regulatory dates, activating the upper layers of the repo hierarchy (explained in our latest piece). this will unwind at the start of 2024

Jan 01, 2024

First of all, Merry Christmas and a Happy New Year! In case you missed it — or you’ve just joined us — our deep dive on the future of the Fed’s RRP (reverse repo) facility went live recently…

Next, we’ll look at the centrally cleared regions of the Treasury/repo market (a small taster below):

But first, a money market update…

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click here for a primer on the foreign repo pool

why the recent spike? year-end regulatory reporting causes dealers to pull back from repo, forcing MMFs to park money in the RRP **but only during year-end.** notice the spike and subsequent plunge at the end of last year.

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